Informa hikes guidance as in-person exhibitions return in force

Informa has raised its annual outlook after a continued rise in subscriptions and a resurgence in live events.

The exhibition organizer now expects to achieve operating profits of £490 million to £505 million, an increase of £15 million from previous estimates, and turnover of £2.3 billion to £2.35 billion.

It attributed this new guidance to “strong outperformance” in the EMEA, North America and ASEAN regions, as well as further expansion in academic and B2B markets.

Underlying revenues in the latter segment grew by more than two-thirds in the first 10 months of this year as it hosted more than 400 events attracting 2.5 million people, generating revenues in excess of £1.1 billion.

There was also significant growth in the B2B Digital Services business, which benefited from record year-over-year contract values ​​within research firm Omdia.

Revenues grew at a more modest level in the academic division, but high subscription numbers and increased interest in advanced learning and open research fueled a greater increase in trade.

As a result, Informa’s total underlying sales grew 41 percent over the period, meaning full-year sales, excluding China, are on track to be around 85 percent of the equivalent figure from three years ago.

Since the beginning of the year, the company’s trade in mainland China has been under severe pressure due to the state’s lockdown measures, which will continue for the foreseeable future.

Still, the group’s revenues are booming in most countries, especially in the United States, where it recently completed the acquisition of Washington DC-based publishing house Industry Dive.

Informa expects to benefit from continued bumper trade in North America and a stronger US dollar, generating nearly two-thirds of its revenue, as well as a gradual recovery in China as Covid restrictions ease.

It said: “The operational momentum in both of our businesses, combined with the strength of our positions in North America, has placed us in a strong position for continued growth and acceleration in 2023, with incremental growth in China as the market reopens. ‘

Informa Shares climbed 6.3 percent to 587.6p on Monday morning, making it by far the best riser on the FTSE 100 Index, although their value has fallen more than 31 percent in the past three years.

The London-based company also announced it had acquired more than £450 million as part of its £725 million share buyback programme, which is in addition to the resumption of ordinary dividends.

Broker Shore Capital has upgraded its recommendation for the company’s stock from hold to buy, in part due to these investor rewards.