Informa reported an improved operating performance and continued progress with the 2014-2017 Growth Acceleration Plan (“GAP”), supported by strong returns from acquisitions and favourable currency trends.
Stephen A. Carter, Group Chief Executive, said: “2016 was a steady and strong year for the Group, where the business grew on all key financial measures, whilst expanding significantly in the US and investing substantially in its products. This sets Informa up well for further progress in 2017.”
He added: “The current year will be characterised by Accelerated Change as we combine the newly-acquired Penton business with Informa, and as we complete planned GAP investments, reap the benefits of our international scale and continue to strengthen capabilities across the Group.”
Increased Balance and Breadth through the 2014-2017 Growth Acceleration Plan:
* Investment: Three quarters of the way through GAP and organic growth investment starting to deliver, with 30+ enhanced products coming on stream through 2017/18;
* Penton Information Services: Integration on track, with Discovery and Delivery phases nearing completion; Patrick Martell relocated to the US to maximise synergy opportunity and ensure smooth combination with Informa;
* International expansion: Four-year programme of targeted organic and inorganic expansion in the US in key verticals including Construction and Real Estate (Hanley Wood Exhibitions, WWETT), Health & Nutrition (Virgo, Penton), Agriculture (Penton), Life Sciences (FIME), Pop Culture (Dallas Comicon) and International Yachting (YPI); Producing strong results, both operationally and through Dollar strength, with the US now representing over 50% of Group revenue on a pro-forma basis and US Dollar/US Dollar-pegged revenues accounting for over 65%;
* Portfolio mix: Proportion of recurring and predictable revenue from subscriptions and exhibitions expected to be more than 55% in 2017;
* Balance and Breadth: Proactive repositioning towards higher growth and margin businesses will see Global Exhibitions and Academic Publishing accounting for circa 70% of Group profit in 2017, with Business Intelligence around 20% and Knowledge & Networking less than 10%;
* Portfolio Management: Further operational focus at Knowledge & Networking with strategic review of five remaining domestic conference businesses in Australia, Brazil, Germany, Singapore and Switzerland.
Continued operational and financial momentum:
* Global Exhibitions: Strong organic revenue growth of +8.7% and reported revenue growth of 16.9%, reflecting increased scale, international breadth and strengthened vertical market positions;
* Business Intelligence: Positive organic revenue growth of +1.1% and reported revenue growth of 4.8%, with subscription focus, strengthened customer relationships, and investment in products and platforms;
* Academic Publishing: Organic revenue growth of +0.3% and strong reported growth of +9.6%, despite ongoing softness in the US book market, reflecting Journals strength, Upper Level Academic focus, currency and strong returns from acquisitions.
* Knowledge & Networking: Progress in Branded Events offset by ongoing volatility in the remaining domestic spot conference businesses to produce a -4.1% organic revenue decline and -0.5% reported revenue decline; following previous portfolio restructuring in other domestic conference businesses in Scandinavia, the Netherlands and Russia, next stage of review now underway.
Stephen A. Carter, Group Chief Executive, concluded: “We saw clear and strong growth in Global Exhibitions and Business Intelligence, alongside a consistent performance in Academic Publishing, despite continued softness in US books. In Knowledge & Networking, we continue our programme to increase focus on Branded Events within the key verticals of Finance, Life Sciences and TMT, whilst confirming today a strategic review of our five remaining domestic conference businesses.”
