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Lockdowns curb growth at Euromoney

Events revenue fell again at the information services provider, but subscriptions remain popular
Lockdowns curb growth at Euromoney
  • Revenue growth stalls 
  • The company is confident of an events bounce-back

Euromoney Institutional Investor (ERM) has been hampered once again by restrictions on physical events, reporting stagnant revenues and operating profits. However, the business information provider has noted growing demand for its subscriptions and is confident the events market will recover once the pandemic has passed. 

Total events revenue for the group reached just £61m in 2021, down from £161m in 2019 and £81m in 2020. The second half of the year was stronger, however, as lockdown restrictions were lifted, and management said it is planning a series of larger in-person events in 2022. “Timing remains uncertain, however, and favours regional events in the short term,” the company said. It also plans to roll out an event membership model. 

Disappointing events revenue was partially offset by growing demand for subscriptions, which saw revenue rise by 7 per cent. Such recurring revenues provide good visibility for the months ahead.

Euromoney has also combined cost-cutting measures – it saved £15m in its events division over the year – with investment in the business, namely acquisitions. The company has acquired two businesses since December, which are “performing ahead of expectations”. However, revenue within the asset management division is still falling in spite of turnaround plans. 

Euromoney hasn’t had an easy 12 months, not least because all three of its segments (asset management, pricing and data & market intelligence) are usually bolstered by lucrative events. However, with subscriptions still proving popular, and the world continuing to open up, the future is positive. Hold.

Last IC view: Hold, 1,016p, 19 Nov 2021

EUROMONEY INSTITUTIONAL INVESTOR (ERM) 
ORD PRICE:1,066pMARKET VALUE:£1.17bn
TOUCH:1,064-1,066p12-MONTH HIGH:1,124pLOW: 867p
DIVIDEND YIELD:1.7%PE RATIO:91
NET ASSET VALUE:453p*NET DEBT:6%
Year to 30 SeptTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201738740.732.730.6
201824510760.832.5
201940282.956.633.1
202033529.926.611.4
202133626.611.718.2
% change+0.3-11-56+60
Ex-div:25 Nov   
Payment:15 Feb   
*Includes £645m of intangible assets, or 590p a share