Events, training and publishing company Informa has reported a 2.4 per cent dip in half-year revenues to the six months to 30 June 2012. According to its half-yearly statement, Informa’s total year-on-year revenues were £619.6m, down from £634.8m in 2011. The company blamed ongoing volatility and uncertainty across European markets.
Despite the trading background, Informa’s EBITDA was up slightly to £172.7m in the first half, with an adjusted operating margin of 25.8 per cent, up from 25.1 per cent in the first half of 2011.
Nevertheless, Informa Chief Executive Peter Rigby said: “Overall, we have made a solid start to the year and are pleased with our permance to date.”
Across its events and training portfolio, nine large new events ran during the first half, lifting revenues to £292.3m, or 47 per cent of overall sales. Adjusted operating profit declined from £59.5m to £54.9m, however.
Forty per cent of the portfolio’s business is made up of exhibitions and large-scale conferences, which remained resilient, cash generative and positive, Informa said.
Many brands offer strong opportunities for organic growth through geocloning, including Cityscape, Beauty, Vitods and events for the telecoms market.
In the first half of 2012 Informa’s top five events were Arab Health, Middle East Electricity, Fispal Technology, ABF and Vitods. They grew revenue over 2011 by 12 per cent and the company reported strong rebookings into 2013.
Twenty per cent of revenue now comes from emerging markets, Informa said.
The company revealed it had acquired conference and events business Merchandise Mart Properties Canada (MMPC) on 3 July.
The company specialises in construction, real estate, interior design and furnishing sectors.
Informa has restructured its European conference and training division and disposed of its Austrian, Czech Republic and Hungarian businesses. This saw the smaller conferences portfolio downsized by 550 conferences across the full-year, generating a loss on disposal of £24.4m.
Informa said the remainder of its European businesses remained profitable, although their revenues generated were “significantly below their peak in 2007 and 2008”.
“We believe there has been a structural change in this market and have therefore taken a non-cash impairment charge of £80m,” the company statement said.
“We are confident about the opportunities that exist to grow the business within Informa by launching new shows or geocloning existing ones into a market which has been less affected by the world’s economic issues,” Informa stated in its report.
It also pointed to a resilient and balanced portfolio of assets spread across formats, sectors and geographies as key in the fight against tougher trading conditions.
“We have become used to operating in this environment and are actively managing the portfolio to concentrate on our areas of strategic focus,” Rigby said. “The business is in better shape as a result and we are well positioned for growth when an economic recovery occurs.”
Product launches planned for the second half and the Canadian acquisition meant the board was confident of meeting expectations for the full year, said Rigby.
Earlier this month, Informa acquired CloserStill Media’s mediaPro event in the UK for an undisclosed sum.
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