26th Mar 2014 08:15
LONDON (Alliance News) - Euromoney Institutional Investor PLC said Wednesday that it expects to post an adjusted pretax profit for the half year ending March 31 that is broadly in line with the previous year, although it cautioned that a reduction in adjusted operating margin and the strong pound will hit its second half.
The financial magazine publisher and conference company expects to see an adjusted pretax profit for the half year of no less than GBP52 million, in line with GBP52.4 million in the previous year.
Adjusted operating margin in the first half is expected to be two percentage points lower than the previous year due to investment, including in its new content-development platform Delphi.
Revenues for the half year are expected to show a headline increase of around 5%, and underlying growth excluding acquisitions is expected to be around 2%. Underlying revenue trends in the first quarter have largely continued into the second quarter in subscriptions and advertising, Euromoney said.
However, underlying revenue from Events rose around 15% during the second quarter.
Euromoney remained cautious about the strengthening of sterling against the US dollar, saying it began to hit overseas profits in the second quarter, and is expected to hurt its second half more significantly.
The company has continued trading in line with expectations, it said, as markets remained challenging. Euromoney cited increasing regulation, demand for tougher capital ratios, and litigation and financial penalties driving financial institutions to tighten their cost controls.
Euromoney said it expects its net debt to be no more than GBP35 million at March 31, compared with GBP9.9 million as at September 30, 2013, due to its acquisition of Infrastructure Journal, final dividend payment and the vesting of share awards.
It will announce its half year results May 15.
Euromoney is untraded Wednesday, it last closed at 1,268.00 pence. Euromoney is 67.87% owned by Daily Mail & General Trust PLC, which was trading down 0.1% at 966.50 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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