22nd Jul 2015 06:54
LONDON (Alliance News) - Euromoney Institutional Investor PLC Wednesday said the outlook for the current financial year looks set to be in line with expectations despite no signs of the challenging market improving ahead of a very important quarter for the company.
The FTSE 250-listed company, which runs media and information companies serving the global financial community, reported total revenue of GBP105.4 million in the third quarter ended June 30, slightly down from the GBP106.6 million a year earlier.
Revenue from subscriptions rose 12% year-on-year to GBP54.0 million from GBP48.4 million, whilst advertising revenue experienced a small 1% lift to GBP12.1 million from GBP12.0 million.
However, sponsorship revenue fell 3% to GBP18.1 million from GBP18.6 million, and event delegates revenue dropped 9% to GBP19.0 million from GBP20.9 million.
"Since reporting its interim results on May 14, 2015, trading conditions have continued broadly in line with the board's expectations as set out in the interim results announcement. The challenging market conditions highlighted at the time of the interim results have shown no signs of improvement," said the company.
"The pressures on the investment banking sector, which account for roughly half the group's revenues, and on fixed income, currency and commodities activities in particular, continue to offset the improving performance in the group's businesses serving the asset management sector. Since June the impact of low energy prices has also started to have a negative effect on the group's activities in this sector," Euromoney added.
Euromoney reported net cash of GBP4.1 million at the end of June against net debt of GBP10.6 million at the end of March.
The fourth and final quarter of the year is pivotal for the company, which reiterated that July and August are the "quietest trading months of the year" but that September is "the most important month for advertising as well as being a period where a significant number of events are held".
It will be a test as Euromoney said trading in September traditionally accounts for around 20% of the company's full year profit. However, the company admits revenue scope for that all-important month is limited.
"The outlook for the current financial year continues to be broadly in line with the board's expectations with the exception of the events businesses. As usual, at this time of the year, revenue visibility for September is limited but the negative trends in advertising revenues and the recent negative trends for events revenues are expected to continue into the final quarter," said Euromoney.
By Joshua Warner; [email protected]; @JoshAlliance
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