Currency masks tough year at Euromoney

The group generates more than two-thirds of revenues in US dollars, so the 20 per cent fall in sterling over the course of the financial year masked a 16 per cent fall in revenues in constant currencies. Advertising, sponsorship and delegate revenues all suffered double-digit declines on an underlying basis, which was partly offset by the 3 per cent growth in subscription revenues. The latter now accounts for just under half of group sales.

A series of one-off costs - including restructuring charges of £10.7m and £23.2m in impairments - led to the reported losses, but cost savings are ahead of plan and finance director Colin Jones is expecting savings of £17m by 2010, up from a previous target of £13m. Moreover, on an underlying basis, pre-tax profits fell by only 6 per cent to £63m, helped by a modest rise in operating profit margins, which Mr Jones said resulted from eliminating low margin products and keeping variable costs "as low as possible". He does warn, though, that the current quarter will be the "toughest" as subscription revenue growth rates fall and advertising, sponsorship and delegate revenues continue to remain depressed. "While things are not getting worse, they are not yet getting better," he cautions. In October, revenues contracted 18 per cent.

Analysts at UBS are expecting adjusted EPS of 35.2p (35.9p in 2009).

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