Informa
LEI: 5493006VM2LKUPSEDU20
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Informa PLC Ten-Month Trading Update
19 November 2024
Consistent strong
performance
Double-digit growth, margin
expansion, free cash flow acceleration in 2024, and continuing
momentum into 2025
Informa (LSE: INF.L), the
international B2B Events, B2B Digital Services and Academic Markets
Group today issued a trading update, confirming double-digit growth
and reaffirming full year guidance.
Stephen A.
Carter, Group Chief Executive,
said:
"Informa continues to deliver a strong
performance in 2024, with forward bookings providing momentum into
2025."
He added: "This year
sees us complete our four-year GAP2 programme, where our
performance has demonstrated the structural growth in our chosen
markets, our geographic strength in the US and IMEA in particular,
and the power of our market-leading specialist B2B Brands and
proprietary first party data."
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Key Highlights
· Consistent strong
performance…Double-digit underlying
revenue growth across the first ten months of 2024 at a Group level
(+10.7%), and in both B2B Markets
(+11.1%) and Academic
Markets (+10.0%);
· Structural growth in B2B
Markets…Structural demand for high
quality face-to-face experiences continues to deliver strong
performances across our B2B business (+11.1% ten-month underlying
revenue growth), including in Transaction-Led Live Events
(Informa Markets, +13.5%),
Content-Led Live Events (Informa
Connect, +4.9%) and Tech-focused B2B Events & Digital
Services (Informa Tech,
+11.2%);
· Geographic
strength…Growth in all major
regions, underpinned by leading Brands and market positions in
the Americas (c.45% of Group
revenue), consistent growth in Asia/ASEAN
(c.25%), market expansion in India, Middle East and
Africa (c.10%), and a focused
portfolio of major brands in UK/Europe
(c.10%);
· IMEA market
expansion…Uniquely strong position
in IMEA across high growth markets
of Bahrain, Egypt, India, the Kingdom of Saudi Arabia, Turkey and
the UAE, where the structural value of Live Events is particularly
powerful and infrastructure investment is significant
(venues/airlines/airports/ hotel capacity); The global reach of our
B2B brands is having major impact, most recently in
Real
Estate, with the second edition of
Cityscape Global in Riyadh
attracting 170k+ participants and generating $61bn+ of transactions
and onsite sales (see www.informa.com/cityscapeglobal);
· Creation of Informa
Festivals…Experience-led Live Events
business on track for launch from January 2025; Prospective brand
portfolio building momentum, most notably in FinTech, with recent Money20/20 US delivering to plan and Money20/20 Middle East confirmed for
Riyadh in 2025, building on inaugural FinTech market event run
earlier this year;
· Expansion in B2B Digital
Services…Creation of Informa
TechTarget scheduled for early December, with shareholder vote
completing on 26 November. Attractive long-term growth opportunity
from creating scale platform in B2B Digital
Services, underpinned by structural
growth in Enterprise Technology. Current market activity subdued,
reflected in modest growth expectations through the second half and
into 2025;
· Diversified growth in
Academic Markets…Ten-month
underlying revenue growth of +10.0%, reflecting continuing benefits
of revenue diversification in Researcher Services, Open Access and Advanced Learning, combined with
further strength in licensing, content syndication and data access,
including $75m+ of AI partnership revenues in 2024;
· 2025
Momentum…Forward
bookings across our Live B2B Events portfolio for 2025 on track, as
are renewals in our Subscription businesses; Informa Markets major
event revenues in Q1, the largest trading quarter, more than 5%+
ahead year-on-year, with the majority of pre-booking revenues
secured, reflecting continuing momentum in the Americas and IMEA in particular;
· Reconfirming market
guidance... On track to meet
previously upgraded full year guidance, including double-digit Underlying Revenue Growth;
Updating for the now completed Ascential acquisition and currency
movements takes full year Group
Revenue guidance to £3.5bn+ and Adjusted Operating Profit to £975m+;
Strong performance on operating cash conversion sees Free Cash Flow increase to £750m+
(GBP/USD 1.28 and excluding any effect of the soon to be completed
combination with TechTarget);
· Strong cash
generation…Free Cash Flow strength
further bolstered by confirmed divestment of minority holding
in Maritime intelligence, with
exit value keeping the average EV/EBITDA multiple of full
Divestment Programme at mid-20x; Continuing progress on other
non-core holdings;
· Long-term balance sheet
strength… Attractive, long-term
funding secured below current cost of financing through successful
placing of €1.75bn bonds, at a weighted average cost of 3.33% and
average term of six years; Combination of efficient financing,
strong Free Cash Flow and portfolio divestments expected to deliver
year-end leverage at c.2.5x Net Debt to EBITDA;
· Board
Update… Catherine
Levene appointed as a
Non-Executive
Director, bringing further US public
and private market experience, as well as extensive expertise in
digital media through Senior Executive roles at Meredith
Corporation and The New York Times Company, amongst
others.1
2025-2028
One Informa
Structural growth in
B2B and Academic markets, combined with the strength of our market
positions, our international reach, particularly in the
US, IMEA and Asia/ASEAN, our Specialist Brands and
Proprietary Data, creates a strong platform for growth.
Over the next four
years, our focus will be on maximising this platform by aligning
our businesses more closely in Operations, Brand, Technology,
Marketing and Data Analytics. From 2025, this will include
operating our three Live B2B Events businesses (Informa Markets, Informa Connect, Informa
Festivals) as one, alongside Informa TechTarget and our Academic Markets division, enabling us
to deliver outstanding customer experience, product innovation and
more efficient growth.
The 2025-2028
One Informa programme will seek to harness the full power of
the platform the Informa Group is building and enhancing, to
deliver sustainable 5%+ underlying revenue growth and consistently
strong shareholder returns.
1Catherine will become a member
of the Board and Nomination Committee with immediate effect. She is
currently a Non-Executive Director at Pitney Bowes Inc. There is no
further information required to be disclosed under the requirements
of Listing Rule 6.4.8.
Enquiries
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Stephen A. Carter,
Group Chief Executive
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+44 (0) 20 8052 0400
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Gareth Wright, Group
Finance Director
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+44 (0) 20 8052 0400
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Richard Menzies-Gow,
Director of IR & Communications
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+44 (0) 20 8052 2787
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Tim Burt / Anthony Di Natale
- Teneo
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+44 (0) 7583 413254 / +44 (0) 7880
715975
|
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