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Cancelled, postponed events dent Euromoney revenues
21st Jul 2020 07:58
(Sharecast News) - Euromoney reported a decline in revenue on Tuesday as it took a hit from the cancellation and postponement of events due to the Covid-19 pandemic.
The business-to-business information services provider said revenue in the nine months to the end of June fell to £255.4m from £295.8m in the same period a year ago, with cancelled and delayed events reducing growth by 16 percentage points.
On an underlying basis, revenue edged down 2% as continued growth in the pricing and data & market Intelligence segments was offset by ongoing challenges in asset management. Euromoney said the investment research division performed in line with the turnaround plan.
In the pricing segment, underlying subscription revenue grew 7%, driven by data-licensing sales. Total underlying revenue in pricing rose 2% as subscription growth was partially offset by previously-disclosed weakness in pre-Covid events and advertising and other revenue.
Data & market intelligence revenue ticked up 1% on an underlying basis, with "robust" subscription growth of 5%, driven by strength in People Intelligence and Next Gen. Euromoney said renewal rates remain strong, "reflecting solutions deeply embedded in customers' workflow".
In the asset management business, underlying revenue fell 9% as subscriptions declined 12%. The company pointed out that subscription revenue at Institutional Investor is event-driven and so was dented by the pandemic, which has affected its ability to run face-to-face events for members.
"Trading in the period since the announcement of our half-year results has been in line with recent trends," Euromoney said.
"We have made excellent progress controlling costs, including reducing the committed costs that relate to previously announced cancelled and postponed events. We will return to running face-to-face events when restrictions on travel and meetings are lifted by governments and companies and in the meantime we are successfully running virtual events."
The company said that its recent acquisitions - BoardEx, Wealth-X and AgriCensus - performed strongly.
Euromoney said it remained in a "strong" financial position, with net cash of £13.9m at the end of June.
"The action we have taken to reduce costs and preserve cash supports our robust balance sheet. This, together with our high level of subscriptions, allows us to maintain investment in future growth. In addition, it will allow us to make further small acquisitions and supports the return to paying dividends, as soon as the Board considers it can do so prudently."
The business-to-business information services provider said revenue in the nine months to the end of June fell to £255.4m from £295.8m in the same period a year ago, with cancelled and delayed events reducing growth by 16 percentage points.
On an underlying basis, revenue edged down 2% as continued growth in the pricing and data & market Intelligence segments was offset by ongoing challenges in asset management. Euromoney said the investment research division performed in line with the turnaround plan.
In the pricing segment, underlying subscription revenue grew 7%, driven by data-licensing sales. Total underlying revenue in pricing rose 2% as subscription growth was partially offset by previously-disclosed weakness in pre-Covid events and advertising and other revenue.
Data & market intelligence revenue ticked up 1% on an underlying basis, with "robust" subscription growth of 5%, driven by strength in People Intelligence and Next Gen. Euromoney said renewal rates remain strong, "reflecting solutions deeply embedded in customers' workflow".
In the asset management business, underlying revenue fell 9% as subscriptions declined 12%. The company pointed out that subscription revenue at Institutional Investor is event-driven and so was dented by the pandemic, which has affected its ability to run face-to-face events for members.
"Trading in the period since the announcement of our half-year results has been in line with recent trends," Euromoney said.
"We have made excellent progress controlling costs, including reducing the committed costs that relate to previously announced cancelled and postponed events. We will return to running face-to-face events when restrictions on travel and meetings are lifted by governments and companies and in the meantime we are successfully running virtual events."
The company said that its recent acquisitions - BoardEx, Wealth-X and AgriCensus - performed strongly.
Euromoney said it remained in a "strong" financial position, with net cash of £13.9m at the end of June.
"The action we have taken to reduce costs and preserve cash supports our robust balance sheet. This, together with our high level of subscriptions, allows us to maintain investment in future growth. In addition, it will allow us to make further small acquisitions and supports the return to paying dividends, as soon as the Board considers it can do so prudently."