22nd Jul 2009 07:00
22 July 2009
EUROMONEY INSTITUTIONAL INVESTOR PLC
INTERIM MANAGEMENT STATEMENT
FOR THE PERIOD TO JULY 21, 2009
Euromoney Institutional Investor PLC ("Euromoney"), the international publishing, events and electronic information group, today issues its Interim Management Statement for the period from April 1 to July 21, 2009. There have been no material events or transactions in the period other than the information contained in this Interim Management Statement.
Since reporting its interim results on May 14, 2009, trading has continued in line with the board's expectations.
Total revenues for the quarter to June 30, 2009 fell by 11% to £84.2 million. Revenues from subscription-based products, particularly those delivered electronically, increased at a healthy 20% compared to a year ago. As expected, the rate of subscription revenue growth is now declining as the lag effect of cuts in headcount and information buying by customers since the start of the calendar year work their way through into revenues. The declines in advertising, sponsorship and delegate revenues, which have been affected by customer budget cuts and tight cost controls, particularly in the financial sector, have continued at similar rates to those experienced in the second quarter.
Foreign currency movements continue to have a significant impact on both revenues and net debt. The group derives nearly 70% of its revenues in US dollars. The average sterling-dollar rate for the third quarter was $1.52 (FY2008: $1.98), the benefit of which was a reduction in the rate of decline in year-on-year revenues from 22% at constant currency to a headline decrease of 11%.
The following table summarises the headline year-on-year revenue changes for the third quarter and the underlying changes after restating revenues at constant currency.
|
Q3 2009 £m |
Q3 2008 £m |
Headline change |
Change at constant currency |
|
|
Subscriptions |
38.5 |
32.2 |
20% |
- |
|
Advertising |
13.5 |
17.8 |
(24%) |
(33%) |
|
Sponsorship |
12.5 |
16.2 |
(23%) |
(31%) |
|
Delegates |
19.2 |
25.9 |
(26%) |
(32%) |
|
Other |
2.7 |
2.5 |
8% |
(1%) |
|
Foreign exchange losses on forward currency contracts |
(2.2) |
- |
- |
- |
|
84.2 |
94.6 |
(11%) |
(22%) |
Net debt at June 30 was £182.4 million, a reduction of £32.3 million since March 31, reflecting the group's strong operating cash flows as well as favourable currency movements during the quarter. Approximately 80% of the group's net debt is US dollar-denominated and the sterling-dollar rate increased from $1.43 at March 31 to $1.65 at June 30, which reduced net debt by £23.0 million. Other significant cash outflows in the quarter included payments of £6.2 million under acquisition earn-out agreements.
The extreme credit market conditions and uncertainty over the global economic outlook will continue to affect trading for the rest of the year. The board expects the rate of growth in subscription revenues to decline further, and no recovery in other revenues is expected until later in 2010. In response to the expected decline in revenues, the board took actions to restructure the business, cut costs and protect margins during the first half. The benefits from these initiatives are coming through in the second half, and the focus on cutting costs will be maintained until markets recover.
Euromoney's strategy is to develop a diversified portfolio of complementary businesses built around leading international brands serving a number of global business sectors, with a strong focus on emerging markets. This strategy will not change despite the tough trading conditions and negative economic outlook. The group will continue to use its strong cash flows to invest in new products, particularly in the electronic information area, in specialist events and in marketing and editorial. The group will also remain focused on using its highly variable cost base and tight cost control to manage its margins and reduce its net debt.
The outlook for trading remains uncertain and volatile. However, the group is prepared for these challenging trading conditions and its strategy for building a more diverse and robust information business leaves it well placed to grow when financial markets start to improve.
Preliminary results for the year to September 30, 2009 will be announced on November 12, 2009.
Padraic Fallon
Chairman
July 21, 2009
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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