Euromoney anticipating drop for full-year revenues

International business information and events group Euromoney Institutional Investor issued a pre-close trading update on Thursday, ahead of the announcement of its results for the year to September 30.

The FTSE 250 company said that, issuing its trading update on July 21, 2016, trading continued in line with the board's expectations, although financial markets have been subject to increased volatility and uncertainty following the Brexit vote in June.

“Underlying revenues for the fourth quarter, which exclude the impact of currency movements and acquisitions and disposals, are expected to have declined by 5% from the same period last year, largely due to the group intentionally reducing the number of commodity events and training courses run,” Euromoney’s board said.

“Reported revenues for the quarter are expected to show a 2% increase, largely as a result of more favourable exchange rates.”

Underlying subscription revenues for the fourth quarter are expected to have increased by 2%, improving on the 1% underlying increase in the third quarter.

Underlying advertising revenues - which are especially bank dependent - are expected to show a decline of 8% for the quarter.

The board pointed out that was slightly better than the third quarter, but still broadly consistent with the long-term trend for advertising.

“After a robust third quarter for events, particularly in the areas of finance and telecoms, underlying sponsorship and delegate revenues are expected to fall by 13% in the final quarter.

“Although the event numbers benefit from easier comparatives after the sharp decline in commodity markets in 2015, sponsorship and delegate revenues have declined as the group took actions earlier in the year to cut the number of commodity events and eliminate unprofitable training activities.”

Reported total revenues for the year to 30 September are expected to show a 1% decrease year-on-year, and an underlying decrease - after adjusting for a biennial event in the first half - of 4%.

“The group expects to announce an adjusted profit before tax of no less than £100m for the year to September 30,” the board confirmed.

“At current exchange rates, group net cash at September 30, 2016 is expected to be no less than £80m, against £83m at 30 June.”

Significant non-operating cash flows since then included the acquisition of FastMarkets for £13m at the end of August, the board pointed out.