30th Sep 2014 07:44
LONDON (Alliance News) - Euromoney Institutional Investor PLC said Tuesday the strength of sterling against the dollar has hit its results for the year to end-September, reducing its profits by around GBP5 million.
The online information and events group expects to announce pretax profit before amortisation and exceptional costs of no less than GBP114 million for the year, down from GBP116.5 million.
Revenue for the year is expected to be broadly in line with the previous year, although on an underlying basis - meaning at constant currency and excluding acquisitions and disposals - revenue is expected to increase 3%. Euromoney also said fourth quarter revenues are expected to be in line with the previous year, with underlying growth of 6%.
Underlying subscription revenues were up 2% in the fourth quarter. Whilst advertising revenues improved from the previous quarter, they fell 2% compared to the previous year. Underlying event revenues were up 15%, driven by sponsorship, high event volumes and some differences in the timing of events.
Euromoney said that the challenging conditions of its market have shown "few signs of improvement". The investment banking sector, which accounts for around half of the company's revenues, continues to be hampered by regulatory pressures. This drag has offset improvements in the asset management sector.
The company said its net debt as at Tuesday is expected to be no more than GBP40 million compared to GBP13.4 million June 30, following its acquisition of African mining trade event African Mining Indaba in July.
Shares in Euromoney are trading up 0.5% at 1,030.40 pence Tuesday morning. Euromoney is 67.87% owned by Daily Mail & General Trust, which is trading down 0.1% at 768.50 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
ERM.L