Euromoney Q3 trading in line with no hit from Brexit

Euromoney Institutional Investor said trading in the third quarter has been in line with the board’s expectations and the UK’s vote to leave the European Union has had no significant impact.

Reported revenues for the period from 1 April to 20 July were down 1% to £104.7m, with the benefit from a favourable GBP/USD rate offset by the reduction in revenues from the disposal of Gulf Publishing and Petroleum Economist in April.

The company generates around two thirds of its revenues and pre-tax profit in US dollars.

Excluding the impact of currency movements and acquisitions and disposals, revenues were also down 1%.

This compares with a 6% drop in the first half and Euromoney attributed the improvement to less-challenging comparatives for event-related revenues and the early signs of progress, noted with the interim results, from the strategic actions the group is taking.

Looking ahead, the company said results for the financial year depend heavily on the month of September, which usually accounts for at least 20% of the full year’s profit.

“As usual at this time of the year, visibility for September is limited particularly for advertising and delegates. It is difficult to assess the impact of Brexit on the group's trading but, if exchange rates remain at current levels, this should provide some protection against increased volatility and uncertainty in investment banking and asset management.”

At 0900 BST, Euromoney shares were up 1.6% to 978.50p.