Ascential PLC on Monday reported double-digit revenue growth in all its segments in the first half of 2022, in line with expectations, but suffered a widened interim loss.
Shares were down 5.5% at 275.92 pence on Monday morning in London.
The London-based business-to-business media and events firm said revenue jumped 59% year-on-year to £95.1 million from £59.7 million for the six months to June 30, reflecting ‘continuing structural growth in attractive end markets boosted by a bounce-back from major events,’ it explained.
However, Ascential’s pretax loss stretched to £41.6 million from £13.6 million. Ascential said it booked a £31.4 million impairment related to its Edge Digital Shelf e-commerce analytics platform. It did not book any impairments a year earlier.
Adjusted earnings before interest, tax, depreciation and amortisation went up by 57% to £67.2 million from £42.8 million a year earlier, representing organic growth of 38%.
Chief Executive Officer Duncan Painter said: ‘Ascential has had an excellent first half of the year, with strong growth in group revenue and profit in line with expectations. Each of our segments delivered double digit revenue growth: all the more pleasing given the challenging macro backdrop.’
Ascential added that the rebound of our two major events, Cannes Lions and Money20/20, has allowed for accelerated investment in the capabilities and footprint of the fast-growing Digital Commerce segment.
‘Both major events of the half performed extremely strongly, with Cannes Lions meeting and Money20/20 Europe exceeding 2019, pre-pandemic, levels of revenue and profit. Money20/20 USA, due to take place in October 2022, continues to trade very well,’ the company said.
Ascential, which did not declare a dividend in 2020 and 2021 due to Covid, decided against an interim payout again.
‘The board will keep capital allocation priorities, including shareholder cash returns, continually under review,’ it said.
Looking ahead, Ascential said it remained confident in its prospects for future success. It said Digital Commerce and Product Design segments are on track to deliver strong levels of growth for the full year, while for Marketing and Retail & Financial Services segments the company expects to see continued recovery from the pandemic.
‘Ascential has emerged from the pandemic stronger than when it went in,’ commented Steve Clayton, a fund manager with Hargreaves Lansdown. ‘The group’s in-person events have surpassed their pre-pandemic scale and their Money 20/20 event looks to have swerved around the crypto pile-up.’
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