Ascential PLC (LON:ASCL) has cancelled its Money20/20 US and Europe 2020 events due to the worsening of the coronavirus situation in the US and the recent spikes in infection rates in certain European countries.
The events and digital information group said it will replace them this year with a digital content programme and a dedicated networking platform for delegates and sponsors.
Money20/20 events are focused on the financial services industry, with the Amsterdam event last year attracting 6,000 attendees.
Rising COVID-1 cases on both sides of the Atlantic have “contributed to a greater level of uncertainty” in both regions, the FTSE 250 company said, made more unpredictable for delegates by renewed travel restrictions in both the US and Europe.
As for the impact on the company, directors say they have “examined a range of planning scenarios that allowed us to conclude positively on the strength of our financing” including the possibility of no live events running in the second half of the year.
Analysts at Shore Capital estimate this could reduce full-year revenue by roughly £30mln to around £294mln and with unavoidable costs leading to circa-£20mln reduction in underlying profits (EBITDA).
“While it is obviously disappointing, this decision reflects the realities of the continued impact of COVID-19 in many regions of the world, and has been taken in the longer-term interest of the Money20/20 community,” said Ascential chief executive Duncan Painter.
“We look forward to connecting with our customers in a digital format in October and, in partnership with this dynamic industry, planning the 2021 editions of this world-class event series."
Ascential shares were little moved on Tuesday at 278p.