REG - Informa PLC - Ten-Month Trading Update

InformaAnnouncement

19/11/2024 07:00

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RNS Number : 6978M  Informa PLC  19 November 2024

 Informa LEI: 5493006VM2LKUPSEDU20

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."

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
(http://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.

(1)Catherine 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
 Stephen A. Carter, Group Chief Executive                  +44 (0) 20 8052 0400
 Gareth Wright, Group Finance Director                     +44 (0) 20 8052 0400
 Richard Menzies-Gow, Director of IR & Communications      +44 (0) 20 8052 2787
 Tim Burt / Anthony Di Natale - Teneo                      +44 (0) 7583 413254 / +44 (0) 7880 715975

 

Additional Information and Where to Find It

In connection with the proposed transaction, Toro CombineCo, Inc. ("NewCo")
filed with the Securities and Exchange Commission (the "SEC") a registration
statement on Form S-4 (File No. 333-280529) (the "Registration Statement")
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