Euromoney Institutional Investor reported a 1% on-year decline in its underlying revenues for the third quarter ended 30 June. The British business magazine publisher and events group said that while its revenues saw a boost from the pro-Brexit sterling weakness, the same was offset by the sale of its energy publishing businesses, Gulf Publishing Company and the Petroleum Economist.
The London-headquartered company revealed the same on 20 July, in its third quarter trading update. It said that revenues for the quarter were £104.7m (€125.72m, $138.64m), down from third quarter 2015 revenues of £105.4. It added that the trading conditions remained in line with the expectations that the board had laid out in its 19 May interim results, with no significant impact from the Brexit vote.
The results were, however, an improvement in comparison to the first half, where revenues saw a 6% on-year decline. The company's trading update explained, "This improvement reflects the benefit of less challenging comparatives for event-related revenues as well as the early signs of progress, noted with the interim results, from the strategic actions the group is taking."
Among its various business divisions, revenues from subscriptions saw the highest increase in revenues in comparison to the same quarter last year. It was up 5% at £56.1m. On the other hand, revenues from advertising saw the biggest on-year decline of 10%, coming in at £8.7m. With regards to this decline, the company said these were bank dependent and consistent with the long-term structural headwinds for this division.
With regards to the annual outlook, the company said a lot would depend on the fourth quarter because the September month historically had always accounted for minimum 20% of the company's full year's profits. As for the impact from the Brexit vote, Euromoney, whose products are primarily focused on asset management, capital markets and commodities, said while it was too early to comment on the same, a continued weakness in the sterling would help offset the increased volatility and uncertainty being seen in investment banking and asset management companies.