11 Mar 2020 07:00
EUROMONEY INSTITUTIONAL INVESTOR PLC ("Euromoney")
Statement regarding Coronavirus COVID-19
11 March 2020
Euromoney, the international B2B information services provider of essential information to global and specialist markets, today updates the market on the impact of coronavirus (COVID-19) on its business. Euromoney's priority remains the health and wellbeing of our employees, customers and business partners.
In FY19, subscription revenue was 60% of total revenue and revenue from events was 31% or £124m. Approximately 34% of FY19 events revenue was in Q3 and 22% in Q4, with the months of June and September being particularly large. The Group has successfully run events with revenues of approximately £42m in the five months ending February 2020.
In common with other events operators, Euromoney has experienced disruption across much of the world as a result of COVID-19 and the restrictions that organisations and governments have placed on travel or attending large gatherings. Euromoney has now made the decision to cancel a number of events, and to postpone some until later in the year. So far, we have cancelled 25 events with a revenue impact of £3m and postponed 55 events, with nine moving into FY21, with an additional FY20 revenue impact of £3m. The overall impact on FY20 of these changes is therefore to reduce revenue by £6m and to reduce operating profit by £5m, before other mitigating cost savings.
Postponed or cancelled events include;
· Capacity Middle East
· Bauxite & Alumina Miami
· WAN Summit New York
The financial profile for the remaining events from now to the end of June 2020 is revenue of approximately £40m (£2m in the remainder of March, £5m in April, £7m in May and £26m in June). The gross profit from these events is expected to be around £23m. The larger events have £7m of committed costs already incurred, and therefore the gross margin impact of running no events in this period would be approximately £30m. We anticipate some of these events may be postponed into later months in FY20, but we have not yet made firm decisions.
Our expectations of the impact on revenue and adjusted operating profit are based on our current assessment and are subject to change if COVID-19- related market disruption increases or improves. We have made no changes at this stage to events originally scheduled from July up to and including September.
Euromoney's financial position remains strong with net cash at the end of February 2020 of £12.2m and unused committed facilities of £240m.
Management will host a short call for analysts and investors at 8:30am today with a presentation available on the Euromoney website, www.euromoneyplc.com. Dial in details: +44 (0)330 336 9411 Code: 4653517
For further information, please contact:
Euromoney Institutional Investor PLC
Wendy Pallot, Chief Financial Officer: +44 20 7779 8866; wendy.pallot@euromoneyplc.com
Chris Collett, Investor Relations: +44 (0)20 7779 8636; chris.collett@euromoneyplc.com
FTI Consulting
Charles Palmer / Jamie Ricketts / Amy Hurnell / Jamille Smith: +44 20 3727 1000; euromoney@fticonsulting.com
NOTE TO EDITORS
Euromoney is a global information business providing essential B2B information to global and specialist markets. Euromoney provides price discovery, market intelligence and events across our segments. Euromoney is listed on the London Stock Exchange and is a member of the FTSE 250 share index. (www.euromoneyplc.com)
LEI number: 213800PZU2RGHMHE2S67
Ends