Euromoney quarterly revenue falls as commodity weakness weighs

Weak commodity prices and pressure on the investment banking business saw first quarter revenue decline at business media group Euromoney Institutional Investor.

The company, which publishes over 70 titles in both print and online, said in the three months to 31 December fell 4%, while revenue on a constant currency basis was down 5%.

The group said that while currency movements did not materially hit its first quarter results, the strength of the US dollar against the sterling was expected to have a "more significant" impact in the second quarter.

Revenue for the period, including that generated by sold businesses, was flat at £94.7m and the company confirmed its adjusted operating margin for the year will be reduced.

Euromoney added that its acquisition of a 15.5% share in Dealogic, which was completed in November for $59.2m (£39.10m), will reduce its subscription revenue and adjusted operating profits by nearly £6m on an annual basis.

"While trading conditions remain challenging, the group will maintain its strategy of investing in new products and digital publishing to drive organic growth, as well as using its strong balance sheet and cash flows to continue to fund further acquisitions," the group said in a statement.

The company said it expects its long-term incentive scheme to reduce its full year profit for 2015by around £4m compared to the previous 12 months.

Euromoney shares were down 3.90% to 1,036.00p at 12:50 on Thursday.