Euromoney quarterly trading in line with expectations

Euromoney Institutional Investor, the international publishing, events and electronic information group, has traded in line with its expectations since the start of April, with total revenues for the quarter to the end of June up nine per cent, driven by continued growth from the group's research and data businesses.

Revenue rose to £111m, while underlying group revenues, excluding the impact of last year's acquisition of Ned Davis Research, increased by 3% (and by 1% at constant exchange rates).

Underlying subscription revenues increased by 6.0% (5.0% at constant exchange rates) while headline subscription revenues increased by 21%. Advertising revenues followed a similar trend to the second quarter with advertising from global financial institutions remaining weak, but offset by growth from the energy sector and emerging markets.

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The firm said: "The third quarter is the most important of the year for the event businesses, with many of the group's largest events held during this period. While the bigger events put in a robust performance, markets became more challenging as the quarter progressed, particularly for smaller events. As a result, sponsorship revenues for the quarter fell by 7% while delegate revenues remained steady.

"These weaker markets had no significant impact on the results for the third quarter, other than the weakness seen in the events businesses in June, but may have an impact on the fourth quarter if they continue. However, July and August are the quietest trading months of the year, and the fourth quarter is the least significant for the group's event businesses. And as usual at this time of year, revenue visibility for September, which traditionally accounts for at least 20% of the group's full year profit, is limited."

While Euromoney generates nearly two thirds of its revenues in US dollars the average sterling-dollar rate for the third quarter was broadly unchanged so the impact on revenues in the third quarter was not significant, the group said.

Net debt at June 30th was £51.3m, a reduction of £37.2m since March 31st.

The share price fell 2.85% to 767p by 10:21.

NR