Euromoney's events business offsets pressure on publications

Euromoney Institutional Investor reported an increase in annual pre-tax profit, driven by growth in the events and data business.

A strong performance in the events and data businesses countered an increasing pressure on its publications unit, which targets the financial services sector.

The publishing, events and information company reported a pre-tax profit of £101.5m for the year to 30 September, up from £95.3m a year earlier, in part due to a drop in finance expenses as the amount it booked for deferred payments for acquisitions fell.

While revenue rose to £406.6m from £404.7m, operating profit fell from £105.6m to £103.6m, as margins continued to be dented by further investment in digital operations.

Although subscription revenue was down 1% and advertising revenue down 7% for trade publications, a 12% growth in sponsorship revenue for the events business mitigated the losses.

Management remained positive about digital media. Chairman Richard Ensor said: "The pressures on the investment banking sector from increased regulation and compliance costs show no real sign of easing. However, other organic growth initiatives in events and data provide confidence in the company's longer term growth strategy, while its strong balance sheet and cash flows provide plenty of headroom for future investment and selective acquisitions."

Euromoney Institutional Investor raised its final dividend to 16.00p, from 15.75p. Shares were down to 1,020.00p as of 10:45 on Thursday.