Euromoney battles banking and commodity weakness

Management's turnaround strategy centres on targeting growth areas and withdrawing from markets facing structural and cyclical challenges, partly through acquisitions and disposals. For example, it has invested in information and services to support asset managers and pricing specialists, and developed new products such as US technology research and analytical tools for airplane fleet managers. It also shelled out £14.3m for FastMarkets, a metal news and prices platform, and Reinsurance Security, which rates reinsurance companies. And it netted £10.8m from the sale of Gulf Publishing and Petroleum Economist.

Euromoney's efforts are yet to galvanise overall growth. Sales were almost flat in the main asset management and pricing, data and market intelligence segments, which together generated nearly three-quarters of turnover. Moreover, banking and finance revenue slid 13 per cent, and commodity events turnover slumped 18 per cent. Breaking revenue down by type paints a more mixed picture. Underlying sales of subscriptions and content edged up on the back of growth in the major divisions. But total underlying advertising revenue slumped 11 per cent as global investment banks slashed marketing spend, and underlying event sales fell 9 per cent as flagging interest in financial training and smaller events weighed on delegate and sponsorship turnover.

Management doesn't anticipate the market backdrop will improve this financial year, but intends to lay the groundwork for growth in FY2018. Broker N+1 Singer expects adjusted pre-tax profit of £103m this financial year, giving EPS of 64.9p (from 66.5p in FY2016).