(Alliance News) - Euromoney Institutional Investor PLC on Thursday said acquisitions boosted revenue growth in its most recently ended financial year, but a prior-year disposal hurt profit.
The business information publisher and event organiser reported pretax profit of GBP29.5 million for the year ended September 30, down 72% from GBP106.8 million a year earlier, despite revenue growing by 5% to GBP256.1 million from GBP244.8 million. Revenue growth was supported by the contribution from the acquisition of BoardEx and The Deal.
Euromoney explained that profit was hurt by a sharp reduction in its operating margin to 12% from 44% a year prior. In addition, the prior year profit had been dressed by a one-off gain on the disposal of Dealogic.
On an adjusted basis, which excludes the impact of the amortisation of acquired intangible assets, pretax profit grew by 5% to GBP104.6 million from GBP99.9 million year-on-year.
Euromoney raised its dividend per share by 2% to 33.1 pence from 32.5p paid a year prior.
"Our performance in the 2019 financial year reflects a continuation of recent trends in our businesses, with good momentum for our pricing, data and market intelligence products offset by conditions in asset management markets," said Chief Executive Andrew Rashbass.
Revenue in the Asset Management unit - which makes 36% of total Euromoney revenue - declined in the recent year by 4% on an underlying basis to GBP145.6 million.
Back in September, Euromoney launched a strategic review of the Asset Management business amid "structural and cyclical challenges". On Thursday, the company said the strategic review is progressing "well", with the segment held for sale.
"We have a clear strategy, focused on services that are firmly embedded in the workflow of customers," added Rashbass. "We look forward to further progress in the year ahead."
Euromoney shares were trading 1.1% lower in London on Thursday at 1,298.00p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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