Euromoney warns Covid-19 will dent revenue as it cancels events
Event operator Euromoney warned on Wednesday that full-year profit and revenue would take a hit from the Covid-19 outbreak as it announced the cancellation and postponement of a number of events as the virus takes its toll on the industry.
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"In common with other events operators, Euromoney has experienced disruption across much of the world as a result of COVID-19 and the restrictions that organisations and governments have placed on travel or attending large gatherings," it said.
So far, the group has cancelled 25 events with a revenue impact of £3m and postponed 55 events, with nine moving into FY21, with an additional FY20 revenue impact of £3m. Together, the changes will reduce FY20 revenue by £6m and operating profit by £5m, before other mitigating cost savings.
Expectations of the impact on revenue and profit are based on the company's current assessment and are subject to change if virus-related market disruption increases or improves. It has made no changes so far to events originally scheduled from July up to and including September.
The financial profile for remaining events from now to the end of June 2020 is revenue of approximately £40m, it said, with gross profit expected to be around £23m. Euromoney said the larger events have £7m of committed costs already incurred, and therefore the gross margin impact of running no events in this period would be about £30m.
"We anticipate some of these events may be postponed into later months in FY20, but we have not yet made firm decisions," it added.