Informa issue full year trading update

Informa (LSE: INF.L), an international B2B Events, B2B Digital Services and Academic Markets Group has issued a trading update, confirming a strong performance in 2023 and confidence of further growth in 2024, whilst separately announcing the combination of Informa Tech’s digital businesses with US-based TechTarget to create a platform in B2B Digital Services.

Stephen A. Carter, group chief executive, said: “Informa delivered a standout performance in 2023 and we are committing to further strong growth in 2024.”

Informa reports the key highlights as follows:

• 2023 performance…Informa expects (subject to audit) to report 2023 Underlying Revenue Growth of c.30%, Reported Revenue of £3,165m+, Adjusted Operating Profit of c.£845m and Free Cash Flow of £600m+;
• Growth drivers for 2024...
• Structural growth…Live & On-Demand B2B Events and Specialist Knowledge
• International reach…Strength in the US and rapidly expanding economies in the Middle East, China and Asia
• High growth B2B markets…eg Pharma, Healthcare, Technology, Health & Nutrition, Beauty and Aviation
• Revenue visibility…£1bn+ in subscriptions and other recurring booked revenues
• Disciplined Balance Sheet…c.1.4x leverage at end 2023
• 2024 Market guidance...2024 guidance targets high single digit Underlying Revenue Growth, with Reported Revenue of £3,425m-£3,475m and Adjusted Operating Profit of £945m-£965m (excluding any effect of the proposed combination with TechTarget; GBP/USD 1.25);
• Growing Shareholder Returns…The strong operating performance delivers improving shareholder returns, with £1.06bn of the £1.15bn current Share Buyback Programme completed by year-end and a 2023 dividend confirmed at 18p, +80% year-on-year;
• The Power of B2B…Major Live & On-Demand brands, rich specialist B2B content and additional Digital Services, are delivering volume and value growth across Informa Markets, Informa Connect and Informa Tech, leading to c.40% aggregate underlying revenue growth in 2023 and a target of high single digit growth in 2024 (excluding any effect of the proposed combination with TechTarget);
• Acceleration in B2B Digital Services…Today we have announced the combination of Informa Tech’s digital businesses with US-based TechTarget, creating a leading platform in B2B Digital Services, underpinned by IIRIS, Informa’s first party data platform, complementing the Group’s leadership position in Live and On-Demand B2B Events. Post completion in H2 2024, this combination will take annual B2B revenues to c.£3bn;
• Academic Strength…Acceleration in Open Research volumes and other Pay-to-Publish Services, combined with underlying strength in Pay-to-Read Subscriptions underpins our 2024 underlying revenue growth target of c.4%, following a c.3% growth performance in 2023.

The full update can be seen here.