Shares in global information services provider Euromoney (ERM) rose in response to a trading update in which the company raised its guidance for annual pre-tax profits. Shares were trading 3% higher at £10.47.

The company announced that adjusted pre-tax profit for the full year ending 30 September is expected to be ‘significantly ahead of analyst expectations. This better than expected performance is due to strong growth in subscriptions in pricing, Data and Market Intelligence, particularly People Intelligence and the continued improvement in Asset Management.

The core focus of Euromoney’s strategy has been to grow the data orientated segments of the business that benefits from high barriers to entry and recurring revenues. A key reason for the upgrade in Euromoney’s full year guidance has been the strong performance from Market Intelligence.

PUTTING THE PIECES TOGETHER

This has in part been facilitated by three key bolt-on acquisitions. BoardEx, Wealth-X, and Wealth Engine. Critically these deals have enabled Euromoney to build a leading people data intelligence business. Furthermore the $95 million invested in acquiring these three businesses is now clearly delivering significant returns for the group.

Euromoney’s strategy is to become a leading global data intelligence business.

People intelligence provides data intelligence on relationships, individuals and organisations that can be used for building and developing connections. There are two particularly appealing facets to this business.

First, the depth, accuracy, and legal useability make data proprietary and serve as a barrier to entry. Second, the business segment is characterized by 97% subscriptions with high renewal rates. The outcome, it seems, is that the data provided is becoming increasingly fundamental to customers’ work.

 

 

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Issue Date: 01 Oct 2021