Ascential PLC (LON:ASCL) swung to a £78.3mln pre-tax loss for the first half of the year as many live events were cancelled because of the coronavirus pandemic.
Turnover of £144.3mln in the six months to June 30 were down 39% on last year after a £96.8mln plunge in events revenues from cancellations or deferrals, which was only partially offset by an encouraging surge of interest for its digital products.
READ: Coronavirus cancellations “could have a knock-on effect into 2021” for events sector
The FTSE 250 group said the 2020 events outlook remains “uncertain” with the operation of its important Money20/20 events in the second half of the year “remaining very challenging”.
Taking a more optimistic view on things, Ascential said excluding event deferrals and cancellations there was only an ‘organic’ decline of 0.3% or even ‘underlying’ proforma growth of 0.6%.
Digital subscriptions were up 10% to £118.8mln, representing the bulk of revenues in the half, with the Digital Commerce segment now the group’s largest product offering as it grew revenue 21% and doubled underlying profits year on year to £13.3mln with margins of 25%.
Chief executive Duncan Painter said Digital Commerce “was well-positioned to respond quickly and comprehensively to the huge changes in consumer behaviour seen in recent months, supporting our brand manufacturer customers in a period of unparalleled demand”.
He expects this business to provide “a strong platform for long-term growth”, which was underpinned by various executive and director appointments announced on the same day, including Charles Song, a former JPMorgan and HSBC banker and the founder and CEO of Chinese technology business Linklogis, as an independent non-executive director, which the company said was a reflection of “the strategic importance of China to our growth plans”.
The half-year ended with net debt of £216mln, but £177mln in cash and £54mln available under revolving credit facility.
Shares in Ascential fell 3% to 290.2p in early trading on Monday.