Home Money Informa abandons £1bn profit target as events company faces exchange rate hit

Informa abandons £1bn profit target as events company faces exchange rate hit

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Informa abandons £1bn profit target as events company faces exchange rate hit
  • Informa expects to achieve more than £975 million in adjusted operating profits this year
  • The company organizes the Arab Health, Dubai Airshow and Cityscape Global events.

Informa, owner of Taylor & Francis, has cut its annual profit forecast in response to adverse currency fluctuations.

The publisher and events organizer expects to achieve more than £975 million in adjusted operating profits this year, having previously targeted more than £1 billion.

However, the London-based company still expects its turnover to exceed £3.5bn thanks to “strong and consistent performance” during the first ten months of 2024.

During the period, Informa reported a 10.7 percent increase in underlying sales thanks to growth in all major regions, especially India, the Middle East and Africa.

Among the exhibitions that the group organizes in the latter territory are Arab Health, the Dubai Airshow and Cityscape Global, a real estate conference that took place in the capital of Saudi Arabia, Riyadh, last week.

Informa’s recent £1.2bn acquisition of Ascential was partly motivated by a desire to expand its fintech business in the Middle East and Africa.

New outlook: Event organizer Informa expects to achieve more than £975m in adjusted operating profits this year, having previously targeted more than £1bn.

The company is targeting Saudi Arabia, where the Tahaluf joint venture operates, and plans to host a Money 20/20 event next January.

The acquisition also helped Informa gain control of the Cannes Lions Festival, one of the world’s largest advertising and marketing industry gatherings.

Cannes Lions and Money20/20 will be part of Informa’s new live events division, Informa Festivals, launching in early 2025.

Informa noted that advance bookings for its live B2B program portfolio and renewals in its subscription businesses for next year were “on track.”

The firm also revealed that revenue from “major events” in its Informa Markets segment, which organizes the Monaco Yacht Show and World of Concrete, rose 5 percent year-on-year in the first quarter.

Stephen A. Carter, Informa’s chief executive, said the group “continues to deliver strong performance in 2024, and early bookings will provide momentum through 2025.”

The exhibition industry has recovered steadily over the past two years after the Covid-19 pandemic led to widespread postponement and cancellation of exhibitions.

informative actions They fell 2.1 per cent to 837.6p on Tuesday afternoon, making them one of the biggest fallers on the FTSE 100 index.

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