21st Jul 2020 10:57
(Alliance News) - Euromoney Institutional Investor PLC on Tuesday said trading for the nine months to the end of June was in line with recent trends as revenue fell, but the business information and events provider said it plans to return to making dividend payments as soon as it can.
Euromoney said revenue for the nine months ended June 30 was GBP255.4 million, down 14% year-on-year from GBP295.8 million. The deterioration was attributed to the cancellation and postponements of events due to the Covid-19 pandemic.
In the Asset Management segment, underlying revenue fell 9%, driven by lower subscriptions, which were down 12%. Subscription revenue in the Institutional Investor arm is event driven, the company said, and so has been hurt by Covid-19 restriction measures.
Total underlying revenue in the Pricing segment grew 2%, as subscription growth was partially offset by weakness in pre-Covid events, advertising and other revenue.
Data & Market Intelligence revenue increased 1% on an underlying basis, with robust subscription growth of 5%, driven by strength in People Intelligence and Next Gen. Recent acquisitions BoardEx, Wealth-X and AgriCensus performed "strongly", the company added.
Euromoney said it has "made excellent progress" in controlling costs, including reducing the committed costs that relate to previously announced cancelled and postponed events due to Covid-19. It highlighted that cash conservation measures and its high level of subscriptions will allows it to maintain investment in future growth, make further small acquisitions and support the return to paying dividends as soon as this can be done "prudently".
Net cash at the end of June 2020 was GBP13.9 million.
Looking ahead, Euromoney said it plans to return to running face-to-face events when restrictions on travel and meetings are lifted by governments and companies, but meanwhile will continue running virtual events.
Shares in Euromoney were trading 3.1% higher at 822.00 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
ERM.L