30th Jan 2014 10:24
LONDON (Alliance News) - Euromoney Institutional Investor PLC said Thursday that it had continued to trade in line with expectations in the first quarter, as it saw revenues rise 3%, but cautioned on the strengthen of sterling during the ongoing second quarter.
The company posted revenues of GBP98.4 million in the first quarter, ended December 31, 2013, up 3% from GBP95.4 million a year before.
The company said that exchange rates had not had a significant impact on revenues in the quarter. On a constant currency basis revenue increased 4%, Euromoney said.
However, Euromoney warned that the strong pound would have more impact on its business in the recently begun second quarter. Euromoney generates more than half of its profits in US dollars. Whilst the company hedges its exposure to dollar revenues by its UK businesses, Euromoney said, it does not hedge the foreign exchange risk on the translation of profits of its non-UK businesses, such Institutional Investor.
The company saw subscription revenues increase to GBP51.3 million from GBP49.0 million in the previous year, while advertising revenues remained flat at GBP11.2 million. A sharp improvement in advertising in the last quarter of its 2013 financial year, driven by product timing, did not continue into the first quarter of the new financial year.
Euromoney is continuing to invest in its content-development platform, Project Delphi, and said that the first phase of this project is on track to be completed in the second quarter. The first products available on the new platform will be its Global Capital Markets content and an online research service from BCA Research Inc.
Euromoney noted that global financial institutions were cautious with their marketing, training and information-buying budgets, due to litigation against banks leading to financial settlements, combined with increased regulation. However, the company said that the macro-economic outlook has continued to improve as it saw signs of increased budgets in the asset management industry, particularly in the US.
Shares in Euromoney were trading down 0.4% at 1,325.00 pence Thursday morning. Euromoney is 67.87% owned by Daily Mail & General Trust PLC, whose shares are down 0.5% at 948.50p.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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