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Earnings: Euromoney Profits In The Gloom; Record Results Despite Gathering Storm

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imageWhat downturn? Financial publisher Euromoney profited in the economic turmoil, reporting record, 21 percent better pre-tax profit of £67.3 million on nine percent better revenues of £332.1 million. Financial institutions have cut some advertising and sponsorship from the company’s eponymous main magazine, and some of its 100 other B2B titles, but the DMGT subsidiary’s chair Padraic Fallon said: “We kept a tight grip on costs throughout, convinced that the troubles in the western banking systems would hit us before long. Maybe Euromoney’s reporters tipped off the bosses… ?

Subscription income actually grew 18 percent to £123.1 million – that’s about double the level of ad sales and – making up a larger slice of group revenue at 37 percent. Meanwhile, B2B magazine verticals outside mere finance gave 16 percent more income, “which helped offset the weakness in some financial sectors, particularly structured finance and hedge funds”. Recently-added online and database products brought home £21.1 million in operating profit, compared with £3.7 million in 2003.

Euromoney must have one of the most enviable positions in publishing at the moment. It says it has a strong cash position though which it will continue investing in high-end subscription products, “even if revenues come under pressure in the short-term as customers react to pressure on their own earnings – because we believe it will deliver excellent growth in the medium and longer-term”.

Surely Euromoney isn’t impervious to the downturn? A-hah – whilst it reported “no significant effect” on its last three months, the economy “will obviously have a negative impact on financial activity in 2009” It expects its advertisers in the financial spend to cut back on marketing and staff – but such advertisers represent just one percent of group revenue. Release.