Euromoney FY profit to top consensus expectations
By Michele Maatouk
Date: Tuesday 22 Sep 2020
(Sharecast News) - Euromoney said on Tuesday that pre-tax profit for the year to the end of September 2020 is set to be ahead of consensus expectations, thanks to strong cost management and a robust subscriptions performance.
Consensus expectations for full-year adjusted pre-tax profit are between £48m and £54m, with a consensus of £50.4m.
The company said it had seen a continued robust performance in the subscriptions business, which accounts for more than two-thirds of revenue.
Meanwhile, physical event revenue remains impacted by the Covid-19 pandemic, mitigated to some degree by cost-reduction measure and revenue from virtual events. Due to ongoing restrictions on travel and large gatherings, Euromoney said it's unlikely to run physical events between October and December.
"We continue to actively monitor government restrictions and engage with local authorities and customers for our upcoming events," it said. "It is uncertain how these restrictions will evolve in coming months, but if we are unable to run physical events from January to March 2021, our Q2 2021 results will also be impacted. In Q2 2020, physical event revenue was £16.9m with gross profit of £10.5m.
"As a consequence, we are undertaking a further restructure and cost reduction programme, which will mainly affect our events business."
The company said its financial position remains strong, with net cash at the end of August of £23.9m.
"This means we can safeguard and even enhance our long-term competitiveness by maintaining investment in future growth," it said, adding that it will also allow the group to make further small acquisitions and return to paying dividends when prudent.
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