TIDMINF
RNS Number : 2244G
Informa PLC
14 November 2022
Informa LEI: 5493006VM2LKUPSEDU20
Informa PLC Press Release
14 November 2022
Underlying revenue growth +41% January to October 2022
Full year revenue and profit targets increased
Accelerating international B2B Markets growth, improving
performance in Academic Markets, and continuing US operating
expansion
Informa (LSE: INF.L), the international Academic Markets, B2B
Markets and Digital Services Group today issued its November
Trading Statement.
Stephen A. Carter , Group Chief Executive, Informa PLC, said:
B2B market demand is growing across many industries and most geographies,
with the current exception of China, which will provide incremental
growth as it reopens. Informa and its Brands are at the heart of
this B2B market strength.
He added: Our 4-year GAP 2 programme continues to deliver growth
and acceleration within both Academic Markets and B2B Markets.
In addition, our divestment programme has completed ahead of schedule
and with returns ahead of target, significantly strengthening our
balance sheet and putting Informa in a strong position for further
growth and investment in 2023.
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Key Highlights
á Continuing Growth Acceleration... Group 10-month underlying
revenue growth for continuing businesses of 41% (excluding currency
benefits and compared to 10m 2021 growth of c3%), underlining the
critical nature of our specialist products for customer growth and
innovation;
á Meeting and exceeding 2022 revenue and profit targets...
Strong outperformance in Live and On-Demand Events in North
America, EMEA and ASEAN, combined with continuing growth in
Academic Markets, drives increase to full year guidance range
(+GBP100m to GBP2,300m-GBP2,350m on revenue and +GBP15m to
GBP490m-GBP505m on adjusted operating profit), with all divestments
and additions now incorporated and with any further Live and
On-Demand Events revenue in China before year-end providing
incremental growth;
á US strength and depth in specialist B2B markets... The Company
has built leading positions in the US and other key regions, a
portfolio of high-quality brands with depth in attractive
specialist B2B markets (Pharma, CyberSecurity, Private Capital,
Healthcare etc), and a growing range of high-value digital
services, maintaining investment in product and service delivery
through COVID to deliver accelerated growth and performance through
2022;
á Continuing momentum into 2023... Improving growth in Open
Research, further return of Live & On Demand Events and growing
monetisation of First Party Specialist Data - underpinned by 65%
+/- US Dollar based revenue, and 60% +/- revenue with strong
forward visibility - delivering strong operating momentum, with
incremental growth in China as the market reopens;
á GAP 2 Portfolio Focus... c.$3bn in value generated through
divestment programme, with expected post-tax cash proceeds of
c.$2.5bn, at an average EV/EBITDA multiple of 28x. Final sale due
to complete on 1 December (Maritime Intelligence);
á Targeted Expansion. ..Earnings enhancing acquisition of US
data business Industry Dive completed, enhancing capabilities in
Audience Development and Lead Generation via specialist digital
content;
á Balance Sheet Strength... Double digit revenue and profit
growth, combined with disciplined high cash conversion, delivering
GBP400m + free cash flow in 2022; Combined with strong divestment
returns, year-end net debt (ex-leases) expected to be close to
zero;
á Accelerating Shareholder Returns... Over GBP450m of GBP725m
share buyback programme completed to date, in addition to the
resumption of ordinary dividends.
Trading Update
Group trading has remained strong through the second half of
2022, with 10-month underlying revenue growth of 41% in our
continuing businesses, reflecting further growth in Academic
Markets and all three B2B Markets businesses ( Informa Markets,
Informa Tech, Informa Connect) .
Today we are increasing our guidance range to Revenue of
GBP2,300m-GBP2,350m and adjusted Operating Profit of
GBP490m-GBP505m*, reflecting further outperformance of Live and
On-Demand Events in North America, EMEA and ASEAN and continuing
growth in Academic Markets.
This guidance range incorporates the previously announced
divestments of EPFR and Maritime Intelligence, as well as the
addition of Industry Dive, and assumes no further Live and
On-Demand Events revenue in Mainland China through November and
December, which will be incremental growth.
We are not immune to macro-economic trends and continually
monitor the potential impact of inflation, interest rate rises,
energy costs and other factors that may influence operating costs
and overall market activity. The operating momentum across both our
businesses, combined with the strength of our positions in North
America, put us in a strong position for continued growth and
acceleration in 2023, with incremental growth in China as the
market reopens.
Academic Markets...Open Research and Specialist Knowledge
Services
Investment in research, development and innovation continues to
grow around the world, fuelling strong demand for specialist
knowledge services, including research verification, editorial,
publication, indexation, distribution and discoverability.
Over the last eight years, we have been investing in Taylor
& Francis range of academic and knowledge services to meet this
demand, initially through InformaÕs first Growth Acceleration Plan
and now through GAP 2 .
This is delivering improving growth and performance across a
broader portfolio of Pay to Read and Pay to Publish services and a
wider and more varied customer base.
In 2022, the combination of strong Subscription renewals,
continued growth in Advanced Learning and further expansion in Open
Research, has delivered underlying revenue growth of 3.0% through
the first 10-months of the year, up from 2.5% over the same period
last year.
By the end of GAP 2, supported by our strong position in Pay to
Read and further acceleration in Pay to Publish, we are targeting
underlying revenue growth of 4%. This requires further investment
in our technology and digital service capabilities but will, we
believe, create a much higher growth, higher quality and higher
value business over time.
B2B Markets...Live & On-Demand Events and Specialist Digital
Services
As digital communications, digital commerce and digital delivery
become more ubiquitous, high quality, highly efficient Live &
On-Demand B2B Events that provide industry access, curated
connections and specialist content, are becoming more valuable.
This is evident across all three B2B Markets businesses in 2022
(Informa Markets, Informa Connect, Informa Tech) , with strong
demand for our Live Event brands in all major markets and
geographies as they have opened up post COVID-19.
Over the first 10-months of the year, underlying revenue growth
in our B2B Markets division was 65% +/- , reflecting 400+ Live B2B
Events, which attracted c.60k Exhibitors, 2.5m+ Attendees and
generated more than GBP1.1bn of revenue.
*Previous guidance was for Revenue of GBP2,150m-GBP2,250m and
Adjusted Operating Profit of GBP470m-GBP490m
This performance, excluding China, is tracking to c.85% +/- of
equivalent full-year revenue in 2019 , outpacing our own
expectations at the start of the year. Growth has been consistent
across all specialist markets and all geographic regions where
COVID restrictions have been removed and are fully open. In the US,
customer demand has been particularly strong as B2B activity has
returned at pace, playing to the strength of our brands, leadership
positions within key specialist markets and the scale of our
overall business in the region.
Combined with further growth in B2B Digital Services , this
outperformance has provided a strong counter-balance to the
continuing COVID restrictions in Mainland China. Here, we have
remained flexible through the year, adapting plans and rescheduling
brands where sensible, whilst continuing to serve customers through
international B2B Events and Digital Services. Our Live Events
activity in the region has been limited to a number of smaller,
regional brands and we are now focusing our major brands on
delivering for customers in 2023.
Continued double-digit growth in B2B Digital Services
Across our portfolio of B2B Digital Services, we continue to
deliver strong revenue growth , reflecting good performances in
specialist Content Marketing , Lead Generation and Research
Subscriptions , including the highest level of annualised contract
values at Omdia on record.
Our customer data engine, IIRIS (First Party Specialist Data) ,
continues to embed its capabilities for collecting, managing and
segmenting customer data across our portfolio of brands. The depth
and range of our Live and On-Demand Events and specialist content
products generate billions of audience interactions each year,
enabling IIRIS (First Party Specialist Data) to build a database of
millions of segmented, fully permissioned First Party Specialist
Data records.
The acquisition of Industry Dive (Specialist Content / Audience
Development) has now completed and it is being operated within
Informa Tech , alongside NetLine (Content Syndication / Lead
Generation) and IIRIS (First Party Specialist Data) , whilst
sharing its knowledge and capabilities more broadly across all
three B2B businesses.
Industry Dive produces specialist high quality digital
publications, known as Dives, covering 24 specialist B2B markets
including BioPharma Dive, Construction Dive, Cybersecurity Dive,
Food Dive, Healthcare Dive, MedTech Dive, Waste Dive .
Alongside continued growth in its current business, InformaÕs
established presence and engaged audiences in other specialist
markets is allowing Industry Dive to accelerate expansion of new
Dives into markets including Manufacturing, Convenience Stores,
Fashion, Hotels and Packaging.
Conference Call
A conference call to discuss the Trading Update will be held at
9.00am UK time, hosted by Group Finance Director, Gareth Wright,
and Director of Investor Relations, Richard Menzies-Gow.
Dial in details as follows:
Confirmation Code: 8879887
UK: 0800 358 6377 or +44 (0)330 165 4027
US: 800-289-0438 / France: 0805 101 219 / Germany: 0800 589
4609
Enquiries
Stephen A. Carter , Group Chief Executive +44 (0) 20 8052 0400
Gareth Wright, Group Finance Director +44 (0) 20 8052 0400
Richard Menzies-Gow, Director of IR
& Communications +44 (0) 20 8052 2787
+44 (0) 7583 413254 / +44
Tim Burt / Simon Duke Teneo (0) 7815 779225
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The New Informa Group
Following the successful completion of the GAP II Portfolio
Focus Programme, Informa is focused on its two leadership
businesses in Academic Markets and B2B Markets, providing
specialist products and services into specialist end markets and
geographies.
Academic Markets & Knowledge Services
Taylor & Francis Group : Specialist Knowledge and Open
Research Services
Brands/Imprints: Taylor & Francis, Routledge, CRC Press,
F1000, Dove Press
Subject Categories: Physical Sciences, Bioscience, Chemistry,
Environment & Sustainability, Food Science & Technology,
Information Science, Haematology, Neurology, Oncology, Psychology,
Engineering, Education, Behavioural Science, Business &
Management, Philosophy, Economics, Sociology
Geographies: US, UK, China, Germany, Japan, Australia, India,
New Zealand, South Africa, Singapore
B2B Markets & Digital Services
Informa Markets : International Live & On-Demand B2B Events
and B2B Market Access
Brands: CPhI Worldwide, Natural Products Expo West, World of
Concrete, China Beauty, Magic, Marintec, Seatrade, Hotelex, MRO
Americas ,
Specialist Markets: Healthcare & Pharma, Health &
Nutrition, Infrastructure & Construction, Beauty &
Aesthetics, Fashion & Apparel, Maritime, Transport &
Logistics, Manufacturing Machinery & Equipment, Hospitality
Food & Beverage, Aviation
Geographies: US, Mainland China, UAE, ASEAN, Monaco, Brazil,
Germany
Informa Connect : Live & On-Demand B2B Experiences
Brands: SuperReturn, IM Power, Finovate, Inside ETFs,
Bio-Europe, BioPharm America, BioProcess International, TIDES,
TMRE, FanExpo, Greenbuild, Zephyr, IGM
Specialist Markets: BioTech & Pharma, Fintech, Private
Equity, Fund Management, Wealth Management, Sustainability,
Maritime, Market Research & Marketing, Food Service &
Hospitality
Geographies: US, Canada, Australia, UAE, Switzerland, UK,
Singapore
Informa Tech : Market Insights and Market Access for
International Tech Communities
Brands: NetLine, Industry Dive, Omdia, Black Hat, GDC, London
Tech Week, AI Summit, Internet of Things World, Enterprise Connect,
Light Reading, Heavy Reading
Specialist Markets: Artificial Intelligence, Cybersecurity,
Enterprise IT, Gaming, Internet of Things, Media &
Entertainment, Service Providers, Components & Devices
Geographies: US, Singapore, Japan, South Korea, Mainland China,
UK, Germany
IIRIS: First Party Specialist Data
Data Services: IIRIS Tracker, IIRIS Passport, IIRIS Recommend,
IIRIS Segment, IIRIS Insights
Informa Partnerships/Investments
Brand Category Equity Interest
Norstella Pharma intelligence 7.6%
Lloyd's List Maritime Maritime intelligence 20.0%
Curinos Retail Banking intelligence 56.2%
Live & On-Demand B2B Events and
Founder's Forum B2B Communities 22.3%
Independent Television
News Creative Content Production 20.0%
PA Media Group Specialist Media and News Services 18.2%
Bridge Events Technologies On-Demand Event Technology 14.9%
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