21st Sep 2020 09:25
(Alliance News) - Informa PLC on Monday posted a significant swing to loss for the first half of 2020 as it lowered its revenue guidance for the full year.
Shares in the FTSE 100 business events and publishing firm were trading 2.9% lower at 369.60 pence each on Monday morning in London, more than halved from 867.40p each at the start of the year.
For the six months ended June 30, Informa posted a pretax loss of GBP801.2 million, swinging from a profit of GBP232.8 million a year prior. This was as revenue dived 42% to GBP814.4 million from GBP1.41 billion.
The London-based company blamed the reduction in revenue on Covid-19, as the pandemic stopped it from running in-person events. Profit was additionally hurt by Covid-19-related non-cash impairments of GBP592.9 million, intangible amortisation costs of GBP148.2 million, and exceptional costs of GBP43.4 million.
No dividend was declared, compared to 21.9p paid a year prior.
Looking ahead, Informa said it has started to see a recovery in its events business in China as well as an up-tick in demand for the its subscriptions businesses, digital content, marketing services and virtual events.
However, although many countries have relaxed restrictions, these moves have been followed by an increase in infections and the reintroduction of local lockdowns and travel restrictions. Informa noted that this has been the case in North America- its largest market for physical events - and also across Europe. While it previously expected events in these regions to gradually resume through the summer, before picking up from September, the pandemic has made that impossible.
As a result, full-year revenue is now expected to be around GBP1.7 billion, down 41% from GBP2.89 billion in 2019.
The company said it has moved to the "next stage" of its Covid-19 action plan, which includes the delivery of over GBP600 million in cost savings to adjusted operating profit in 2020, with direct savings of around GBP400 million and more than GBP200 million annualised indirect savings by year-end.
"The combination of our resilient Subscriptions-led businesses and the actions we are taking position Informa securely through to the end of 2021. We remain confident that Informa will emerge from the pandemic with stability and security, delivering long-term sustainable growth and shareholder value," said Chief Executive Stephen Carter.
Cash held as at June end was GBP915.2 million.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Informa