Despite weak advertising conditions, half-year figures from data and events specialist, Euromoney, beat City forecasts as the group continued to boost its focus on more reliable subscription-based revenue. But with management expecting the rate of subscription revenue growth to fall in the second half, the shares look up with events.
Subscription-based sales generate most of the data and research unit's revenue, which was further lifted by last year's £68m acquisition of Ned Davis Research. As such, sales here surged 33 per cent to £65.8m, with adjusted operating profits rose 37 per cent to £28m. The conferences and seminar unit is also doing well, with sales up 22 per cent to £46.7m – although, within this, sponsorship revenues were flat on the back of tightened budgets. Still, tough advertising markets have hit the financial publishing unit with sales here down 7 per cent to £36.5m, and with operating profits 12 per cent lower at £10.9m. The business publishing division coped better and sales rose 6 per cent to £27.5m – although continued digital investment meant flat operating profits of £9.3m.
Underlying sales in April rose 6 per cent, prompting broker Numis Securities to raise full-year forecasts by 4 per cent - pre-tax profit of £104m is expected, giving EPS of 60.8p (2011: £85.3m/56p).
EUROMONEY INSTITUTIONAL INVESTOR (ERM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 735p | MARKET VALUE: | £929.7m | |
| TOUCH: | 731-735p | 12-MONTH HIGH: | 828p | LOW:520p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 199p* | NET DEBT: | 35% | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 168 | 32.7 | 18.0 | 6.25 |
| 2012 | 189 | 39.8 | 22.9 | 7.00 |
| % change | +13 | +22 | +27 | +12 |
Ex-div: 23 May Payment: 19 Jul *Includes intangible assets of £479m or 388p per share | ||||
