Euromoney trading in line, Q4 revenues seen up 3%
Euromoney Institutional Investor said on Thursday that overall trading since its last update in July has continued in line with the board's expectations for the year, with reported revenues for the fourth quarter expected to show a 3% rise, largely thanks to the acquisition of price reporting agency RISI in April.
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Euromoney said foreign exchange rates had no meaningful impact on its revenues this quarter, with underlying revenues - which exclude FX and acquisitions and disposals - expected to have declined 2% compared to last year.
Fourth -quarter underlying subscription revenues are expected to be flat on the year as a strong performance from the pricing, data and market intelligence segment has been offset by growing headwinds from the impact of MiFID II on the asset management division. The rate of decline in underlying advertising revenues is expected to have fallen again, reflecting some success in the strategic investment in thought-leadership products.
After a strong recovery in event revenues in the second and third quarters, underlying sponsorship and delegate revenues are expected to fall by 8% in the final quarter.
"While the performance of the event businesses remains robust, this decline in revenues largely reflects the decision not to repeat events in certain markets due to increased geopolitical instability," Euromoney said.
Reported total revenues for the year to the end of September are expected to reveal a 6% rise from last year, but an underlying drop of 1%.
The company added that it expects to announce an adjusted pre-tax profit of no less than £105m for the year versus £102.5m in 2016.