Energy market turmoil to hit Euromoney full year revenues

Financial information group Euromoney said tough conditions in commodities markets will result in a 1% fall in full year revenues and an adjusted profit before tax of at least £107m against £116.2m in 2014.

Fourth quarter headline revenues are expected to fall 5% with underlying revenue, at constant currency and excluding acquisitions and disposals, down 7%, Euromoney said. Underlying advertising revenues are expected to be down 12% in the final quarter.

The company said pressures on the investment banking sector, which account for roughly half the group's revenues, have continued to offset the growth being achieved by the group's businesses serving the asset management sector.

It added that weak commodity markets, especially the fall in energy prices, had adversely affected the group's activities, such as hosting conferences.

“This trend has continued into the fourth quarter, exacerbated by the volatility in commodity markets in general during this period. As a result, underlying delegate revenues are expected to fall by 17% in the quarter, while sponsorship revenues have proved more robust and are expected to decline by only 2%,” Euromoney said.

The group, which publishes financial magazines, said underlying subscription revenues for the fourth quarter are expected to rise by 1%, after a 4% increase in the previous quarter which reflected the earlier receipt of certain subscription accounts recognised on a cash basis.

Subscription revenues continue to grow at an underlying rate of 2%. The heavy fall in underlying advertising revenues is “broadly consistent with the long-term trend being experienced in the group's advertising”, Euromoney said.

The company added that group net cash at 30 September, 2015 is expected to be no less than £20m, against £4.1m at June 30 at current exchange rates.