11th Mar 2020 08:44
(Alliance News) - Euromoney Institutional Investor PLC became the latest company to warn on earnings due to the coronavirus outbreak, as the media and investment company on Wednesday said full-year revenue will take a GBP6 million hit.
Euromoney said it has cancelled 25 events, costing it GBP3 million in revenue for the year ending September. It has also postponed 55 events, moving nine to financial 2021, resulting in an extra GBP3 million revenue hit.
"The overall impact on financial 2020 of these changes is therefore to reduce revenue by GBP6 million and to reduce operating profit by GBP5 million, before other mitigating cost savings," Euromoney explained.
The company added: "In common with other events operators, Euromoney has experienced disruption across much of the world as a result of covid-19 and the restrictions that organisations and governments have placed on travel or attending large gatherings. Euromoney has now made the decision to cancel a number of events, and to postpone some until later in the year.
"The group has successfully run events with revenues of approximately GBP42 million in the five months ending February 2020."
For remaining events from now until the end of June, gross profit is expected to be around GBP23 million. The larger events have GBP7 million of committed costs already incurred.
"Therefore the gross margin impact of running no events in this period would be approximately GBP30 million. We anticipate some of these events may be postponed into later months in financial 2020, but we have not yet made firm decisions. Our expectations of the impact on revenue and adjusted operating profit are based on our current assessment and are subject to change if covid-19 related market disruption increases or improves. We have made no changes at this stage to events originally scheduled from July up to and including September," Euromoney said.
Shares in the company were down 1.3% at 957.00 pence pence each in London early on Wednesday.
By Eric Cunha; [email protected]
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