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Euromoney Ins.InvPLC (ERM)

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Thursday 26 January, 2012

Euromoney Ins.InvPLC

Interim Management Statement

RNS Number : 1967W
Euromoney Institutional InvestorPLC
26 January 2012

                        EMBARGOED FOR RELEASE 7am JANUARY 26, 2012







Euromoney Institutional Investor PLC ("Euromoney"), the international publishing, events and electronic information group, today issues its Interim Management Statement for the period from October 1, 2011 to January 25, 2012.  There have been no material events or transactions in the period other than the information contained in this Interim Management Statement.



Since reporting its 2011 results on November 10, 2011, trading has continued in line with the board's expectations as set out in the preliminary results announcement.


Total revenues for the quarter to December 31, 2011 increased by 11% to £94.6 million.  Underlying revenues, excluding the impact of Ned Davis Research (NDR), increased by 3%.  


NDR has performed well since its acquisition in August 2011 and contributed subscription revenues of £6.9 million.  Underlying group subscription revenues increased by 8%, continuing the good momentum from financial year 2011.  Headline subscription revenues, including NDR, increased by 25%, and now account for more than 50% of the group's revenues.


As highlighted in the preliminary results announcement, the volatility and uncertainty in financial markets during the summer of 2011 was followed by weakness in sales of advertising and, to a lesser extent, event sponsorship.  As expected, the impact of this advertising slowdown was felt in the first quarter, with advertising revenues down 13%.  In contrast, event sponsorship held up reasonably well while delegate revenues from the group's training and event businesses have continued to achieve good growth.


The group generates nearly two thirds of its revenues in US dollars and movements in the sterling-dollar rate can have a significant impact on reported revenues.  However, the average sterling-dollar rate for the first quarter was $1.58, the same as last year, and the impact of exchange rates on revenues in the first quarter was not significant.


The following table summarises the year-on-year revenue changes for the first quarter at both headline rates and at constant currency:




Q1 2012


Q1 2011




Change at

constant currency


























Foreign exchange losses on forward currency contracts





Total revenues






The performance of advertising, sponsorship and delegate revenues is closely aligned with the calendar budget cycle of most customers, which lags the group's financial year by one quarter.  As the new calendar year starts, global financial institutions are inevitably taking a cautious approach to managing their costs with tighter controls over budgets for marketing, training and information buying.  The impact on the group's revenues is difficult to determine so early in the budget cycle, but recent sales trends suggest the outlook for advertising revenues will be more challenging in the second quarter, while the trends in sponsorship and delegate revenues remain stable.


The group continues to invest at similar levels to 2011 in technology and new products to drive long-term revenue growth.  At the same time costs, particularly headcount, are being managed tightly with a view to maintaining the group's first half adjusted operating margin as close as possible to the 30% level achieved in 2011.


Financial Position

Net debt at December 31, 2011 was £104.8 million, a decrease of £14.4 million since the year-end.  There were no significant capital outflows or currency movements in the first quarter and the reduction in the group's net debt reflects the continued strong operating cash flows of the group.


The scrip alternative for the 2011 final dividend was accepted by holders of 69% of the company's shares, resulting in the issue of 1.6 million new ordinary shares and the payment of a cash dividend of £4.8 million on February 9, 2012, subject to approval at the Annual General Meeting.



The broad sentiment for global markets has not changed significantly since the group announced its 2011 results.  Markets continue to suffer from concerns over financial risk, particularly in the Eurozone, and weaker prospects for global economic growth.  As a result, the board expects the outlook for revenues to be tougher in the second quarter, although the resilience of the group's subscriptions revenues, the strength of its events businesses and the impact of the acquisition of Ned Davis Research should all provide some protection against the difficult markets.


AGM/ Next Trading Update

The company is holding its Annual General Meeting at 9.30am on January 26.  No further comment on trading will be made at this meeting. 


The company expects to announce its results for the six months to March 31 on May 17, 2012.  A pre-close trading update will be provided as part of a presentation to analysts and investors on April 18.



Padraic Fallon


January 25, 2012




For further information, please contact:


Euromoney Institutional Investor PLC

Padraic Fallon, Chairman:                                +44 20 7779 8556;

Richard Ensor, Managing Director:                   +44 20 7779 8845;

Colin Jones, Finance Director:                          +44 20 7779 8845;


FTI Consulting

Charles Palmer:                                                +44 20 7269 7180;





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.



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 titles in both print and on-line format including Euromoney, Institutional Investor and Metal Bulletin, and is a leading provider of electronic research and data under the BCA Research, Ned Davis Research and ISI Emerging Markets brands.  It also runs an extensive portfolio of conferences, seminars and training courses for financial markets.  The group's main offices are in London, New York, Montreal and Hong Kong and more than a third of its revenues are derived from emerging markets.

This information is provided by RNS
The company news service from the London Stock Exchange