19th Jul 2018 09:25
LONDON (Alliance News) - Euromoney Institutional Investor PLC said Thursday that its revenue in the third quarter of the year dropped 9%, "largely due" to the sale of its Global Markets Intelligence unit and a movement in USD-GBP exchange rate.
For the three months to June 30, the company posted revenue of GBP107.9 million, down 8.9% from GBP118.4 million a year before.
On an adjusted basis - without accounting for exchange-rate differences, acquisitions, disposals and discontinued operations - revenue for the quarter was flat on the comparative year ago period.
In April, the company completed the sale of its Markets Intelligence division for GBP129 million. Therefore, it treated the business as a discontinued operation for this set of results.
A stronger pound against the dollar hurt revenue in the recent quarter, the company said, as it generates over three-quarters of revenue and profit in dollars.
The pound's average dollar rate for the quarter was USD1.37, compared to USD1.27 in the third quarter of 2017.
"Each annualised one-cent movement in the exchange rate has a GBP700,000 impact on profits," Euromoney explained.
By division, the FTSE 250-listed business information and events company, saw revenue in its subscriptions and content unit down 3.4% to GBP54.5 million from GBP56.4 million a year before.
Events revenue fell by 0.5% to GBP40.3 million from GBP40.5 million, and Advertising sales were 13% lower to GBP8.5 million from GBP9.8 million.
Euromoney shares were trading down 0.4% at 1,394.00 pence.
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