Informa PLC on Thursday announced that Events Investment Fund has acquired a stake in Tahaluf, the joint venture between Informa and the Saudi Federation for Cybersecurity, Programming and Drones (SAFCSP).
Events Investment Fund, part of Saudi Arabia’s National Development Fund, said it purchased the stake in Tahaluf - a Saudi large-scale events company - as part of its ambition to develop ‘sustainable infrastructure for the culture, tourism, entertainment and sports sectors’ in the country.
The joint venture between the SAFCSP and Informa, a London-based publishing and events firm, supports the Saudi Arabian government’s ‘Vision 2030’ plan to diversify its economy.
Chief Executive Officer Stephen Carter said: ‘Tahaluf is a dynamic and ambitious initiative, and we are proud that Informa’s expertise is part of delivering world-class, sustainable events in Saudi Arabia.’
Also on Thursday, Informa reported that its revenue and profit in its half year had shot up following a strong return to live and on-demand events.
In the first half of 2023, Informa said revenue increased 53% to £1.52 billion, up from £993.5 million the year prior.
Pretax profit surged to £314.6 million, up from GPB41.5 million year-on-year. Informa attributed this to a strong return to live and on-demand events, including in China.
‘We are focused on building a better, broader and more scalable business, which is reflected in a very strong first half performance, putting us on track to meet or beat our guidance for 2023, with further momentum visible into 2024 and 2025,’ said Carter.
Informa swung to net debt of £1.21 billion from net cash of £15.3 million. The company said this was caused by the acquisitions of Tarsus and Winsight, in March and May respectively, and by its ongoing share buyback programme.
The rise in net debt was offset by a 63% boost in free cash flow to £224.6 million from £138 million.
Informa declared an interim dividend of 5.8 pence per share, up 93% from 3.0p the year before.
The company said it ‘will look to continue to grow dividends in line with this approach, striking a balance between rewarding shareholders and retaining the financial strength and flexibility to reinvest in the business and pursue growth opportunities.’
Informa said its expectations for its full year were at the top end of guidance. It anticipates reported group revenue growth between £2.95 billion and £3.05 billion, and adjusted operating profit between £750 million and £790 million.
‘The strength of trading through the first half of 2023, combined with forward visibility, provides confidence we can deliver further underlying and reported revenue growth in the second half of 2023 and into 2024,’ Informa said.
Shares in Informa were up 4.2% at 777.20 pence in London on Thursday morning.
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