22nd Jul 2008 07:00
July 22, 2008
EUROMONEY INSTITUTIONAL INVESTOR PLC
INTERIM MANAGEMENT STATEMENT
FOR THE PERIOD TO JULY 22, 2008
Euromoney Institutional Investor PLC ("Euromoney"), the international publishing, events and electronic information group, today issued its Interim Management Statement for the period from April 1, 2008 to July 22, 2008. There have been no material events or transactions in the period other than the information contained in this Interim Management Statement.
Since reporting its 2008 half year results on May 15, 2008, trading has continued in line with the board's expectations. Revenues for the quarter to June 30, 2008 increased by 13% to £94.6 million (2007: £83.6 million), driven mainly by continued strong growth from subscription products and increased attendance at the group's conferences, seminars and training courses. Net debt at June 30, 2008 was £186.0 million against £201.8 million at March 31 2008, reflecting the group's strong operating cash flows.
Euromoney's strategy is to develop a portfolio of complementary businesses built around leading international brands serving a number of global business sectors, with a strong focus on emerging markets. The revenue performance for the quarter to June continued the trends seen in the first half and further illustrates the group's success in growing its subscription-based products, particularly from the provision of electronic information and data services. Subscriptions continue to account for more than a third of annual revenues and comprise the group's largest revenue stream. In addition, delegate revenues from training and events have so far proved resilient to the difficult markets. The growth in advertising and sponsorship revenues continued at similar rates to the first half, reflecting the impact of the problems in global credit markets and spending cuts at global financial institutions. Meanwhile, emerging markets, which account for a significant and growing part of the group's revenues, remain in relatively good health.
Revenue visibility for the fourth quarter, and in particular the month of September which historically accounts for more than 20% of the group's annual adjusted operating profit, is similar to this time last year and in line with the board's expectations.
Since March 31, the company has disposed of its 15% interest in LAMP Technologies LLC for an initial cash consideration of £1.6 million which will give rise to a provisional exceptional profit on disposal of £1.6 million. LAMP Technologies is a provider of back office services to the hedge fund industry and the investment was acquired as part of the acquisition of Metal Bulletin plc in October 2006. In May, the company's subsidiary, Internet Securities Inc ("ISI"), acquired a 51% interest in Benchmark Financials Limited ("BPR") for an initial consideration of £0.5 million. BPR is one of the leading providers of company financial data, analysis and business credit ratings for Colombian companies, through its BPR Benchmark product, and will be integrated with ISI's Emerging Markets Information Service.
Consistent with the comments made at the time of the half year results, the group remains focussed on investing to grow the business, increasing revenues from high quality subscription-based products, particularly electronic information services, reducing its dependence on advertising and maintaining a high margin. This strategy has helped to create a more diverse business that is well placed to meet the challenges of current markets.
The company expects to provide a pre-close trading update for the year to September 30, 2008 at the end of September.
Padraic Fallon
Chairman
July 22, 2008
END
For further information, please contact:
Euromoney Institutional Investor PLC
Padraic Fallon, Chairman: +44 20 7779 8556; [email protected]
Colin Jones, Finance Director: +44 20 7779 8845; [email protected]
Richard Ensor Managing Director +44 20 7779 8845; [email protected]
Financial Dynamics
Charles Palmer: +44 20 7269 7180; [email protected]
NOTE TO EDITORS
About Euromoney Institutional Investor PLC
Euromoney Institutional Investor PLC is listed on the London Stock Exchange and a member of the FTSE-250 share index. It is a leading international business-to-business media group focused primarily on the international finance, metals and commodities sectors. It publishes more than 70 magazines, newsletters and journals, including Euromoney, Institutional Investor, and Metal Bulletin. It also runs an extensive portfolio of conferences, seminars and training courses and is a leading provider of electronic information and data covering international finance, metals and emerging markets. Its main offices are in London, New York and Hong Kong and more than a third of its revenues are derived from emerging markets.
Visit our website at www.euromoneyplc.com
This Interim Management Statement is prepared for and addressed only to the group's shareholders as a whole and to no other person. The group, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this Interim Management Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. Statements contained in this Interim Management Statement are based on the knowledge and information available to the group's directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the group in this Interim Management Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Interim Management Statement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The group undertakes no obligation to update these forward-looking statements.
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