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(Alliance News) - Informa PLC on Thursday said it swung to an annual loss due to event cancellations, but pointed to a recovery as global vaccination programmes continue.
The London-based publishing, business information, and exhibitions company swung to a 2020 pretax loss of GBP1.14 billion after posting a profit of GBP318.7 million in 2019.
Revenue slumped 43% to GBP1.66 billion from GBP2.89 billion, in line with market forecasts. In its own guidance given at the beginning of January, Informa said it expected 2020 revenue to be in the range of GBP1.65 billion to GBP1.68 billion. The disruption to its physical events portfolio due to the coronavirus pandemic led to the sharp decline in revenue, it said.
Informa swung to a statutory operating loss of GBP880.4 million for 2020 following an operating profit of GBP538.1 million in 2019. This reflected the reduction in revenue as well as an increase in adjusting items, it said, with a "significant" proportion relating to a non-cash goodwill impairment of GBP592.9 million.
Adjusted operating profit for 2020 was GBP267.8 million, down from GBP933.1 million in 2019 and towards the top of end of its expected range of GBP250 million to GBP270 million.
Meanwhile, 2020 adjusted earnings before interest, tax, depreciation and amortisation was GBP367.3 million, down from GBP1.03 billion and above consensus forecast of GBP265.0 million.
As a result of its revenue decline, the company did not pay a dividend for 2020 and withdrew its 2019 final dividend.
Looking ahead, Informa said it views 2021 as a "transition year", with continued growth in both Subscriptions-led businesses and further expansion in B2B digital services, supported by a progressive return in B2B physical events. The company pointed to an easing of Covid-19 restrictions and customer confidence rebuilding as reasons for optimism.
"This transition year will be defined by continued strength and improving growth in our subscriptions-led businesses, further growth in B2B digital services and a progressive reopening of physical events, led by mainland China and North America, which will ensure we deliver our revenue commitments for 2021, and remain cashflow positive throughout," said Chief Executive Officer Stephen Carter.
Informa confirmed its commitment for baseline revenue of GBP1.7 billion in 2021, with any improvement depending on the "pace and scale of return of physical events outside of mainland China".
Shares in Informa were down 0.4% at 561.80 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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