(Adds details, analyst comments, share movement)
July 29 British business media group Informa Plc
said adjusted pretax profit rose 6 percent in the first
half, driven by a strong performance at its global events
The company, which publishes real-time news, research,
market data and 55,000 academic books and journals, said
adjusted pretax profit rose to 155.2 million pounds ($263.5
million) in the six months ended June 30, from 146.5 million
pounds a year earlier.
Revenue rose 1 percent to 569.6 million pounds.
The company's global events division, which consists of
trade shows, exhibitions and conferences, accounted for 43
percent of total revenue in the first half and was up 6.8
percent from a year earlier.
London-based Informa, which moved back to the UK from
Switzerland in June, said it expected to spend up to 90 million
pounds over three years to meet its organic growth objectives,
as part of a strategic review it started in January.
"This will be weighted to the Business Intelligence
Division, where we believe the potential for improvement is
greatest," Chief Executive Stephen Carter said in a statement.
The majority of the investment will be capital expenditure
and is expected to impact group margins by about 150-250 basis
points, the company said.
Analysts with Liberum said the extent of the investment was
indicative of challenges the company faces and that it expected
consensus estimates for earnings per share to be lowered.
Shares of the FTSE 250 component were down 1.2
percent at 484.6 pence in morning trade on Tuesday on the London
Informa was formed by the 1998 merger of IBC Group Plc and
Lloyd's of London Press Ltd. Its oldest business, the Lloyd's
List, was started in 1734 and is one of the world's oldest
continuously running journals.
($1 = 0.5891 British Pounds)
(Reporting by Noor Zainab Hussain and Abhiram Nandakumar in
Bangalore; Editing by Gopakumar Warrier)