16th Jul 2014 08:31
LONDON (Alliance News) - Euromoney Institutional Investor PLC, which generates about two-thirds of its revenues and pretax profit in US dollars, Wednesday reported a 6% decline in third-quarter headline revenue to GBP106.6 million, hit by the appreciation of the pound against the dollar, a trend it said will continue in the final quarter.
Euromoney also said it had acquired a new trade event.
In a statement covering the period between April 1 and July 15, Euromoney Institutional Investor, which publishes financial news and data and runs events, said that trading has continued in line with its expectations since reporting interim results on May 15.
"The challenging market conditions highlighted at the time of the interim results have continued, with the pressures on the investment banking sector, particularly fixed income trading, showing no signs of abating. This negative trading backdrop is more than offsetting the benefits from improving conditions for the group's businesses serving the asset management industry," Euromoney said in a statement.
Euromoney brought its interim management statement forward by one day as it also reported the acquisition of the trade and some assets of the mining investment events division of US-based Summit Professional Networks for GBP45.3 million. The main asset it is acquiring is Investing in African Mining Indaba, an investment forum and trade event for African mining.
Euromoney said the event, which takes place every February in Cape Town, attracts over 7,000 African mining professionals.
"The acquisition is expected to be earnings enhancing for the financial year to September 30, 2015, the first year the event will be run under Euromoney's ownership. However, due to the timing of the conference, the acquisition is expected to reduce Euromoney's adjusted operating profits for the year to September 30, 2014 by approximately GBP1.0 million," Euromoney said in a statement.
The business being acquired made GBP6.2 million in adjusted earnings before interest, tax, depreciation and amortisation in the year ended June 30, according to Euromoney.
The deal is being funded from Euromoney's existing borrowing facilities, it said.
Euromoney shares were Wednesday quoted at 1,060.00 pence, down 1.1%.
By Samuel Agini; [email protected]; @samuelagini
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