UPDATE 2-Euromoney cautions on subs as profit impresses

* Advertising and promotions revenue declines slow

* Subscriptions will "struggle to see much growth" in 2010

* Shares rise 1 percent

(Adds CFO, analyst comments, shares)

By Georgina Prodhan

LONDON, Nov 12 (Reuters) - Business-to-business publisher Euromoney (ERM.L) struck a cautious tone for 2010 subscriptions even as the market cheered forecast-busting profits for the latest full year.

The company, a unit of Britain's Daily Mail & General Trust (DMGOa.L), posted adjusted pretax profit for the year to Sept. 30 at 63 million pounds ($104 million), down 6 percent but above its 57 million-pound guidance, and said customers were becoming more positive despite tough conditions.

However, Chief Financial Officer Colin Jones cautioned that subscriptions -- which constitute almost half of revenues -- are dependent on January customer budget decisions which will take six to nine months to filter through.

"We're going to struggle to see much growth at all in 2010. Yes, it will turn negative first, probably by the end of this quarter," he told Reuters in a telephone interview.

Shares in Euromoney, which also organises large trade events and training, rose 1 percent to 407 pence in a flat market by 0932 GMT.

"Euromoney has produced excellent prelims, well ahead of Numis estimates and consensus," the brokerage wrote in a note, raising its target price to 550 pence from 492 pence and reiterating its "buy" recommendation.

Euromoney has been protected from the immediate effects of the recession by its high proportion of subscription revenues, which are still rising but at a slowing rate as the effect of client cuts in headcount gradually translate into revenue loss.

"We're looking ahead again, beyond a tough start to 2010, to opportunities emerging in a changed landscape. We concentrated on quality, focused on subscriptions, cash flows and costs," Chairman Padraic Fallon said in a statement on Thursday.

Euromoney said rates of decline in advertising, sponsorship and delegate revenues in the second half were no worse than in the second quarter. Subscription revenues rose 24 percent over the year, but just 10 percent in the fourth quarter.

Fellow professional publisher Reed Elsevier (REL.L) (ELSN.AS) reported on Wednesday that first-half trends had continued in the second half, with advertising and promotion markets remaining difficult but likely to stabilise. [ID:nLB114697]

CFO Jones said the company was happy with its current cost base, barring future negative surprises, and was even feeling pressure to increase headcount in a few business areas that were early to feel the effects of the downturn.

Euromoney's parent company Daily Mail is due to report results on Nov. 26. ($1=.6033 Pound) (Reporting by Georgina Prodhan, editing by Will Waterman/Joel Dimmock)