27th Jan 2022 07:00
EUROMONEY INSTITUTIONAL INVESTOR PLC
First Quarter Trading Update
Strong Start to the Year
27 January 2022
Euromoney Institutional Investor PLC ("Euromoney" or the "Group"), the global B2B information services provider, today announces a trading update for the three months ended 31 December 2021.
Highlights:
· Q1 to 31 December 2021:
o Group reported revenue of £93.3m up 19%; underlying1 up 13%
o Strong start to FY 2022 with underlying1 revenue growth in both subscriptions up 8% (67% of Group revenue) and events up 53% (23% of Group revenue)
o Continued strong recovery in events; revenue of £21.4m (Q1 2021: £14.1m) reflecting successful blended events during the period (Q1 2021 virtual only); Q1 2022 represented 57% of Q1 2019 revenue
· Asset Management turnaround continuing to progress ahead of plan
· Highly complementary acquisition of Boardroom Insiders for $25.0m adding further capability and scale to People Intelligence, announced separately today
· Positive outlook for FY 2022:
o Subscriptions - expect continued strong revenue growth in Fastmarkets and FPS
o Events - continue to expect further recovery
o Group is well-positioned to deliver results in line with the Board's expectations
Andrew Rashbass, CEO, said:
"We have made a step change towards being a fast-growing, high-margin, 3.0, information-services subscription business. This is reflected in a strong start to the year, driven by growth in subscriptions combined with continued strong recovery in events.
"We are investing organically and through acquisitions and are pleased to announce the acquisition of Boardroom Insiders which brings greater scale to our fast-growing People Intelligence business.
"We remain confident in our ability to deliver high-quality profitable growth by providing clarity in opaque markets to help our customers compete successfully."
Revenue by type
Revenue growth YoY 3 months to 31 December 2021
| Revenue £m Q1 2022 | Reported growth | Underlying1 growth |
Subscriptions | 62.3 | +13% | +8% |
Events | 21.4 | +51% | +53% |
Other | 8.9 | (6)% | (10)%* |
Foreign exchange gains on forward contracts | 0.7 |
|
|
Group | 93.3 | +19% | +13% |
*Reflects phasing of client projects in Q1 2022 compared to prior year, which is expected to reverse across the remainder of FY 2022
Trading highlights:
Fastmarkets
· | Q1 revenue up 23% underlying; up 22% reported. Strong subscriptions revenue up 17% underlying reflecting growth in Metals and Mining, Forest Products and Agriculture. |
Financial & Professional Services (FPS)
· | Q1 revenue up 17% underlying; up 33% reported. Good subscriptions revenue up 5% underlying reflecting growth in People Intelligence and NextGen pillars. Higher events revenue driven by successful blended events hosted in the US and Europe. |
· | Today we have announced the acquisition of Boardroom Insiders for $25.0m which adds further capability and scale to our People Intelligence business. Following this acquisition, the People Intelligence Book of Business (BoB2) is £47m, up 14% on a reported basis since 30 September 2021. |
Asset Management
· | Q1 revenue up 2% underlying; unchanged reported. Subscriptions revenue up 1% underlying. |
· | Investment Research (BCA Research and NDR) turnaround remains ahead of plan with the non-vote Investment Research Book of Business (BoB2) at 31 December 2021 +0.3% (31 December 2020: -1.2%). |
Balance sheet
Euromoney's financial position remains strong with net cash at 31 December 2021 of £19.2m.
Summary and outlook
During FY 2021 we made a step change towards being a fast-growing, high-margin, 3.0, information-services subscription business. We have made a strong start to FY 2022, driven by growth in our subscriptions combined with continued strong recovery in events. For FY 2022 we expect continued strong growth in subscriptions for Fastmarkets and FPS. In Asset Management the turnaround of our investment research businesses continues to progress ahead of our plan.
Events revenue grew strongly in Q1 2022 as we hosted a number of successful blended events against a comparative that was entirely virtual. Regional and domestic events performed particularly well, and we are encouraged by the strong demand we have seen for in-person events. While the emergence of the Omicron variant in late 2021 has led to some tighter short-term travel restrictions in certain geographies this has not had a significant impact on our expectations for events revenue for the full year and we continue to expect further recovery.
The Group is well-positioned to deliver results in line with the Board's expectations.
The interim results for the six months ending 31 March 2022 will be announced on 19 May 2022.
People Intelligence teach-in
We will host a teach-in for investors and analysts on our People Intelligence business on 31 March 2022. The session will be an opportunity to gain a deeper understanding of our fast-growing People Intelligence business. Further details on how to join the event will made available shortly.
Restatements for H1 2021
At the FY 2021 results we applied the change in interpretation of IAS 38 "Intangible Assets" in relation to configuration and customisation of Software as a Service (SaaS) solutions. In the table below we provide the following H1 2021 income statement items on the same basis.
IAS 38 - H1 2021 Adjusted operating profit and profit before-tax
| H1 2021 (restated for IAS 38) | H1 2021 (as previously published) |
Adjusted operating profit3 | £m | £m |
Fastmarkets | 15.1 | 15.2 |
FPS | 8.3 | 9.5 |
Asset Management | 22.5 | 22.8 |
Divisional adjusted operating profit3 | 45.9 | 47.5 |
Foreign exchange gains/(losses) on forward contracts | 1.0 | 1.0 |
Central costs | (12.1) | (11.7) |
Group adjusted operating profit3 | 34.8 | 36.8 |
Associates and JVs | 0.1 | 0.1 |
Net finance costs | (1.7) | (1.7) |
Adjusted profit before-tax4 | 33.2 | 35.2 |
Footnotes:
1 Underlying measures are the adjusted results stated at constant exchange rates, including pro forma prior-year comparatives for acquisitions and excluding disposals, material event and publication timing differences and pro forma prior-year adjustments for the application of new accounting standards that are not applied retrospectively.
2 Book of Business ("BoB") is the annual contracted values for subscriptions. Like-for-like growth is calculated by adjusting prior periods with a constant GBP/USD rate and the pro forma impact of net M&A.
3 Adjusted for amortisation of acquired intangible assets and exceptional items.
4 Adjusted for the amortisation of acquired intangible assets, exceptional items, net movements in deferred consideration and acquisition commitments and fair value remeasurements.
For further information, please contact:
Euromoney Institutional Investor PLC
Wendy Pallot, Chief Financial Officer: +44 (0)207 779 8866; [email protected]
Christian Cowley, Investor Relations: +44 (0)7408 863420; [email protected]
FTI Consulting
Jamie Ricketts / Tom Blundell / Lucy Highland: +44 (0)20 3727 1000; [email protected]
About Euromoney Institutional Investor PLC
Euromoney Institutional Investor PLC ("Euromoney") is a global B2B information-services business. We provide actionable data, analysis, intelligence and access through three divisions in markets where information and convening market participants are valued. Euromoney is listed on the London Stock Exchange and is a member of the FTSE 250 share index. (euromoneyplc.com)
LEI Number: 213800PZU2RGHMHE2S67
CAUTIONARY STATEMENT
This Trading Update ("Statement") and all information included in it is based on the knowledge and information available to the Board of Directors at the date it was prepared and therefore facts stated and views expressed may change after that date.
This document and any materials distributed in connection with it may include forward-looking statements, beliefs, opinions or statements concerning risks and uncertainties, including statements with respect to the Group's business, financial condition and results of operations. Those statements and statements which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect the Company's Directors' beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and which may cause results and developments to differ materially from those expressed or implied by those statements and forecasts. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this Statement. The Group undertakes no obligation to release any update of, or revisions to, any forward-looking statements, opinions (which are subject to change without notice) or any other information or statement contained in this Statement. Furthermore, past performance of the Group cannot be relied on as a guide to future performance.
No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per Euromoney Institutional Investor PLC share for the current or future financial years would necessarily match or exceed the historical published earnings per Euromoney Institutional Investor PLC share.
Nothing in this document is intended to constitute an invitation or inducement to engage in investment activity. This document does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This document does not constitute a recommendation regarding any securities.
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