Half-year earnings at Euromoney Institutional Investor PLC (LON:ERM) were down by two thirds, but this was as expected, with underlying profit before tax up 13%.
The business information and events group boasted of its new status as a “fully independent” FTSE 250 company with its own board, after former major shareholder Daily Mail & General Trust PLC (LON:DMGT) sold out of its 49% stake in April.
READ: Euromoney agrees to buy BoardEx and The Deal for US$87.3mln
Adjusted revenue for the six months to 31 March of £184.9mln was down 2% on this time last year, although up 1% at constant currency rates and would have been higher if not for “challenges” in event delegate marketing.
Forex weighed heavily on profit before tax, which at £46.1mln was 1% higher at the reported level but improved 13% on an underlying basis, as operating profit margins were maintained. Adjusted diluted earnings per share rose 2% to 34.32p.
Statutory results showed PBT plunge 59% to £49.3mln and diluted EPS tumble 68% to 32.9p, though this was predominantly due to the gain on disposal of Dealogic in December 2017.
Chief executive Andrew Rashbass said the first six months of the year saw a continuation of recent trends and further strategic progress. “We have also continued our strategic focus on embedding our businesses in the workflow of our customers,” he said, adding that the acquisition of BoardEx and The Deal in February support the transition towards a “B2B 3.0 business model”.
On the outlook, Rashbass said Euromoney was making “steady progress” towards the new business model, underpinned by underlying operating cash flows of £53.2mln.
“The UK's exit from the EU may lead to foreign exchange volatility and general business uncertainty. We continue to expect to deliver profit in line with the board's expectations.”
Euromoney shares were down 1.3% to 1,394p mid morning on Thursday.