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DMGT’s financial business pub Euromoney is another to have found strong profit rebound after last year’s cost cuts.
Its adjusted pre-tax profit for the last year jumped 37 percent to a record £86.6 ($139.17) million, on revenue that was just four percent better thanks to “the resilience of subscription income combined with a good recovery in advertising and sponsorship”, chairman Padraic Fallon says.
The underlying higher income helped offset “significant investment in new products and the online migration of its print businesses“, the publisher reported.
“Cash flows are strong and debt is falling rapidly to leave headroom for increased investment in new products, most of them with digital platforms, as well as small strategic acquisitions.
“During the year, the group invested more than £6 ($9.64) million in online products and new businesses, all of it from profits, and there is a significant programme of new launches planned for 2011.”
Its strategy is to increase its dependence on subscription income (currently half of revenue), to migrate from print to online and to launch new electronic information services. It includes the prospect of small acquisitions, like retail database Arete, which it bought in August for up to £6.7 ($10.77) million.
Euromoney says subscription rates recovered faster than expected over the last year – attributed to more marketing outreach, electronic distribution opportunities and an influx of new customers for financial info, washed up in the downturn.
“Most of the group’s biggest subscription businesses … have seen revenues and renewal rates return to pre-credit crisis levels earlier than expected.”