Euromoney Institutional Investor

LN: ERM

£1448.7m market cap

1326p last close

Euromoney Institutional Investor is a global, multi-brand information business that provides critical data, price reporting, insight, analysis and must-attend events to financial services, commodities, telecoms and legal markets.

Investment summary

Euromoney’s Q3 trading update indicated overall trading performance in line with management expectations and we have not changed our FY19 estimates. The recent capital markets day took a deeper dive into the Investment Research and Fastmarkets operations and how management is working on transforming them into ‘3.0’ B2B information service businesses, built into clients’ workflows. Given the group’s earnings resilience, subscription base and attractive cash conversion, the rating disparity with peers still appears excessive.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 428.4 110.3 106.5 76.4 17.4 12.6
2018A 414.1 112.9 109.2 81.3 16.3 13.1
2019E 398.0 102.2 99.0 73.5 18.0 12.2
2020E 418.0 108.2 105.0 77.9 17.0 12.8
Last updated on 25/07/2019
Industry outlook

There is another good year in prospect for PDMI. Events are unlikely to show as much progress as they did in 2018, simply through having had such a good year. The larger question remains over the performance of Asset Management, with a combination of internal and external factors hampering performance. MiFID II and Brexit continue to overshadow, but renewal rates have held up relatively well. Vote share revenues have fallen away as these institutional budgets have been pared, but management has also identified shortcomings in the new business approach, which it is now rectifying.

Last updated on 25/07/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 81
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.4 8.2 (5.0)
Relative* 0.2 7.6 (2.4)
52-week high/low 1412.0p/1132.0p
*% relative to local index
Key management
Leslie Van de Walle Chairman
Andrew Rashbass CEO
Wendy Pallot CFO
Sarah Cooke IR

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