Informa Plc (LON: INF), the international B2B Events, B2B Digital Services and Academic Markets Group, has issued a trading update, confirming double-digit growth and reaffirming full year guidance.
Double-digit growth, margin expansion, free cash flow acceleration in 2024, and continuing momentum into 2025
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/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.
