- Shares jump on confirmation of full year outlook at top end of range
- Interim dividend payment resumed
- Industry Dive acquisition enhances digital service offering
Shares in information services and events company Informa (INF) jumped 4% following an upbeat trading statement.
Management has confirmed full year guidance, with underlying revenue growth of 40%-plus expected during the first half.
Full year 2022 revenue is expected to reach the top end of the company’s range. Current guidance is for revenue between £2.15 billion and £2.25 billion and adjusted profit between £470 million and £490 million. The group is resuming the payment of an interim dividend of 3p per share.
The first half has been characterised by ongoing strength in academic markets, a return to live and on-demand events, and good growth in business-to-business digital services.
BUILDING THE B2B DIGITAL SERVICE OFFERING
Informa has acquired Industry Dive, a US business media company, for an enterprise value of $525 million.
Industry Dive has made three acquisitions to date, including the marketing arm of global tech firm News Cred in 2019, a niche trade publication called PharmaVoice in 2021 and CFO.com in 2021.
The deal gives Informa access to an in-house content arm that focuses on niche, professional audiences.
It provides Industry Dive with access to a wider set of audiences to expand its reach and launch new verticals.
Industry Dive serves 24 specialist markets with over 2.5 million active subscribers, and engaged audiences of 13 million.
Audience is monetised by specialist marketing and business-to-business lead generation.
EXPERT VIEW
Peel Hunt analyst Roddy Davidson says: ‘The group’s stock has fallen by 13% over a three-month view and is trading on 2023 forecast and 2024 forecast PE, EV/EBITDA and dividend yield ratios of 14.7, 10.4 and 2.2% and 12.2, 9 and 2.8%, respectively.
‘We continue to view its stock as a core sector holding.’
