£1623.5m market cap
1486p last close
Euromoney Institutional Investor is a global, multi-brand information business that provides critical data, price reporting, insight, analysis and must-attend events to financial services, commodities, telecoms and legal markets.
Investment summary
Euromoney has announced a strategic review of its Asset Management business. This division accounted for 39% of FY18 revenues and 44% of FY18 operating profit before central costs. It has been under structural and cyclical pressure as its clients (primarily sell-side providers) have struggled with the dual impacts of MiFID II and the growth of passive asset management. A sale is not necessarily the only outcome of the review and, if that is the route chosen, management has a record of strong discipline in M&A pricing. A disposal would naturally result in the growing Price Reporting segment being a greater proportion of the continuing business. The valuation implications depend on how the proceeds were reinvested.
Y/E Sep |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 428.4 | 110.3 | 106.5 | 76.4 | 19.5 | 14.1 |
| 2018A | 414.1 | 112.9 | 109.2 | 81.3 | 18.3 | 14.7 |
| 2019E | 398.0 | 102.2 | 99.0 | 73.5 | 20.2 | 13.7 |
| 2020E | 418.0 | 108.2 | 105.0 | 77.9 | 19.1 | 14.4 |
| Last updated on 19/09/2019 | ||||||
Industry outlook
Pricing, Data and Market Intelligence remains strong, ahead by 6% in Q319, up from +3% in H119. Asset Management (which comprises both Investment Research and the Institutional Investor brand) remains a challenged market, but the pace of decline is reportedly slowing. Moves to cut costs here have allowed margins to hold up, as well as giving some scope to reinvest in the sales function and upgrading the product set. Having had an exceptionally strong Events performance in H119, Banking & Finance reverted to a more usual trading pattern, up 1% in Q3.
Last updated on 19/09/2019
Sector |
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| TMT |
Share price graph
Balance sheet |
|
|---|---|
| Forecast net cash (£m) | 81 |
| Forecast gearing ratio (%) | N/A |
Price performance
% |
1m |
3m |
12m |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Key management |
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|---|---|
| Leslie Van de Walle | Chairman |
| Andrew Rashbass | CEO |
| Wendy Pallot | CFO |
| Sarah Cooke | IR |
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