Informa PLC (IFJPY) (FY 2024) Earnings Call Highlights: Record Revenue and Strategic Growth ...
Revenue Growth: Double-digit revenue growth in 2024.
Adjusted Operating Profit Growth: Over 20% growth in adjusted operating profit.
Dividend Growth: Double-digit dividend growth.
Free Cash Flow: Strong performance in free cash flow.
Share Buyback Program: Recommencing with a minimum of $200 million for the year.
Academic Markets Business Revenue: Best-ever revenue and performance in 2024.
Recurring Revenue Growth: Around 4% in the academic markets business.
B2B Revenue: Expected to be over $4 billion in 2025.
Geographic Revenue Growth: Significant growth in the United States, China, Asia, and GCC in Southeast Asia.
2025 Revenue Guidance: 5% consistent group underlying growth; 7%+ for B2B business.
Earnings Growth: Another year of double-digit earnings growth expected.
Capital Allocation: Focus on reinvestment, dividends, buybacks, and maintaining a strong balance sheet.
Warning! GuruFocus has detected 5 Warning Sign with IFJPY.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Informa PLC (IFJPY) reported an outstanding year in 2024 with double-digit revenue growth, over 20% adjusted operating profit growth, and double-digit dividend growth.
The company achieved significant international growth, particularly in the United States, China, Asia, and the GCC in Southeast Asia.
Investments in enterprise technology platforms and data platforms during COVID-19 are yielding significant returns, boosting confidence for 2025.
Informa PLC (IFJPY) has a strong balance sheet, allowing for the recommencement of a share buyback program with a minimum of $200 million for the year.
The company has successfully expanded its B2B brand portfolio, now boasting 65 marquee and power brands, up from six a decade ago.
Some revenue from academic markets is one-off and non-recurring, which could impact future financial stability.
The company did not provide specific adjusted operating profit guidance for 2025, which may cause investor uncertainty.
There are concerns about potential impacts from geopolitical factors, such as tariffs and supply chain disruptions, particularly in the US market.
The academic segment faces challenges from indirect funding cuts in the US, which could affect research funding and revenue.
Despite strong growth, the company acknowledges that the market will remain skeptical and Informa PLC (IFJPY) will need to continue outperforming to see sustained benefits.
Q: You haven't been specific on adjusted operating profit guidance for 2025, which might make investors nervous. Can we assume margins won't go backwards compared to 2024? A: Stephen Carter, Group Chief Executive, clarified that Informa has never provided adjusted operating profit guidance except during COVID. He assured that margins will grow and there is no intention to reduce them. Gareth Wright, Group Finance Director, added that the company aims to progressively expand margins through the One Informa period.
Q: Can you provide an example of how data offerings enhance revenue per exhibitor at exhibitions? A: Stephen Carter explained that Informa launched a branded product called Lead Insights, initially from their Dubai business, which offers pre-qualified lead products to exhibitors. This service is used to improve marketing efficiency and drive more qualified buyers to trade shows.
Q: What is the outlook for forward bookings from January and February shows into 2026? A: Stephen Carter stated that forward bookings are positive, with visibility into the first half of 2025 and beyond. In some regions, particularly the GCC, they are booking for larger shows in early 2026 due to new capacity.
Q: Can you update us on the situation in China and its impact on your business? A: Gareth Wright noted that while no events have been traded in China yet for 2025, the company is comfortable with existing growth levels. Both China and Hong Kong have recovered to pre-COVID levels, and the ASEAN business is performing strongly, contributing significantly to regional growth.
Q: How should we think about your approach to share buybacks? Is it a permanent strategy? A: Gareth Wright confirmed that share buybacks are part of Informa's permanent capital allocation policy. The company has committed to an initial minimum of GBP200 million for 2025, with the potential for more depending on the year's developments and inorganic investment opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
39 minutes ago
- Miami Herald
Automotive Tariffs are Dramatically Shifting Buyer Habits, Study Says
The fixation on international trade tariffs during President Trump's second term has created significant pressure for automakers and buyers alike, just as the auto industry was rebounding after the COVID-19 pandemic. In the past few months, some automakers have adjusted their pricing and/or limited the availability of some foreign-produced models, but there haven't been any major widespread disruptions regarding specific brands or models. Nonetheless, car shoppers are still anxious about any surprises or significant changes regarding their ability to get a new set of wheels. According to a recent survey by Edmunds, 44% of in-market shoppers said that tariffs would "definitely influence their purchase decisions," while 31% indicated they would have some influence. Only 17% said that tariffs would have no impact at all on their buying decisions. Actual data recorded by Edmunds shows that the impact of tariffs on the automotive market has had a far less significant effect on new car prices than expected, as the average transaction price (ATP) for new vehicles remained stable year-over-year. In April 2025, the ATP was $48,422, just a 2.2% increase from the exact figure in 2024. Despite this, some buyers strategically time their purchases in response to the ever-changing tariff situation. About 37% of buyers in the market for new cars told Edmunds that they plan to buy sooner to avoid potential tariff-based pricing issues, while 25% say they're waiting out their big purchases. At the same time, most new car buyers that Edmunds surveyed believe that they understand how tariffs will affect the market. Edmunds's survey data shows that 55% of buyers said they're either somewhat or very confident in knowing how tariffs affect vehicle prices, while 21% said that they weren't confident. With all the hubbub regarding new models, Edmunds observed that some buyers are opting to hit the tariff-free used market to get their fix of new-to-them sets of wheels. Alongside observing a surge in visitors to the used cars section of their website, 58% of respondents shared with Edmunds that they have developed a heightened interest in purchasing used vehicles. Within this group, 46% indicated they are particularly drawn to certified pre-owned (CPO) vehicles, highlighting a growing preference for these thoroughly inspected and warranty-backed options in the used car market. Despite this trend, Edmunds warns that there is a limited number of near-new used vehicles, which is a consequence of the reduced leasing and new inventory volumes that occurred as a result of the microchip shortage just three years ago. According to Edmunds's data released on May 22, the average price for a 3-year-old used vehicle was $30,522 during the first quarter of 2025, a 2.3% year-over-year increase from $29,844 in 2024. They also observe that used cars are taking longer to sell at dealerships. Currently, used vehicles sit on lots for an average of 38 days, four days longer than last year and tied with the record for the longest wait time since the first quarter of 2021. Although Edmunds' data only shows a 2.2% increase in new car prices from 2024, I believe a significant portion of this is due to automakers' efforts to maintain steady prices. Price guarantee programs like Hyundai and Genesis's Customer Assurance and Ford's Employee pricing programs have helped automakers keep punching a dent in sales. For instance, Ford saw a 16% surge in year-over-year sales in May 2025, while Hyundai saw an 8% increase during the prior month. However, time will tell when it comes to the response to auto tariffs and any developments regarding trade deals that could bring down potential duties on imported cars from specific countries. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Miami Herald
43 minutes ago
- Miami Herald
Popular Latin American chain closes restaurants, files bankruptcy
The casual dining sector has faced a number of economic issues over the last two years that have led to several restaurant chains closing hundreds of locations, and in some cases, filing for bankruptcy. The major challenges include huge debt obligations that have become unmanageable, as interest rates increased after the Covid-19 pandemic. Don't miss the move: Subscribe to TheStreet's free daily newsletter Also, rising inflation over the last three years has resulted in higher costs of labor and food products, which in turn forced restaurants to raise their prices to the dismay of consumers. Related: Iconic San Francisco restaurant closes permanently after 40 years Changing attitudes of customers toward spending on restaurant meals, as prices have risen, have also taken a toll on the restaurant industry. The most significant distressed restaurant chain to close locations was seafood chain Red Lobster, which filed for bankruptcy in May 2024, closing about 187 restaurants. The dining chain emerged from Chapter 11 in September 2024 and now operates about 478 locations in 44 states. Italian restaurant chain Buca di Beppo closed 18 locations last year before it filed for Chapter 11 bankruptcy protection on Aug. 4, 2025, to reorganize its business with the support of its lenders. The restaurant chain on Nov. 4 won approval to sell its 44 remaining corporate-owned restaurants to its lender Main Street Capital Corp., with a credit bid of $27 million. Bar and grill chain TGI Fridays had 161 U.S. locations when it filed for Chapter 11 bankruptcy on Nov. 2, 2024, to reorganize and closed 76 locations. The restaurant chain listed 85 U.S. locations on its website in April. Mexican restaurant chain On The Border Mexican Grill & Cantina had about 120 locations at the beginning of this year and closed or vacated 40 non-performing stores on Feb. 24 because of problems with rent and/or financial performance. On The Border filed for Chapter 11 bankruptcy on March 4, 2025, with plans to sell its assets to its prepetition bridge loan lender. Miami Beach-based CHG US Holdings, which operates 18 Planta restaurant locations across the country in cities such as New York, Chicago, and the Los Angeles area, filed its petition on May 12 in the U.S. Bankruptcy Court for the District of Delaware. The debtor has closed restaurants in West Palm Beach, Fla., South Beach, Fla., and Brooklyn, N.Y., since filing for bankruptcy. Finally, popular New York-based Peruvian restaurant chain Tu Casa has filed for Chapter 11 bankruptcy and closed half of its locations. Related: Another popular pizza dining chain files Chapter 11 bankruptcy The restaurant chain's affiliate, Don Kew Inc., filed for Chapter 11 bankruptcy protection on April 4 for a restaurant, Hangar Bar & Grill, in Kew Gardens, Queens. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The debtor listed up to $50,000 in assets and $100,000 to $500,000 in liabilities, which include tax obligations owed to the New York State Department of Taxation that prompted the bankruptcy filing. Tu Casa Restaurant Corp. and two affiliates, Tu Casa #3 Restaurant Corp. and Tu Casa #4 Restaurant Corp., filed for Chapter 11 protection on May 30 in the U.S. Bankruptcy Court for the Eastern District of New York, seeking to reorganize. Tu Casa, which was established in 2004, expanded its chain to four restaurants in the Queens, N.Y., communities of Kew Gardens, Forest Hills, Richmond Hill, and Astoria, before closing the Richmond Hill and Astoria locations. The restaurant specializes in Peruvian rotisserie chicken, Peruvian fried rice, Peruvian linguini, and various seafood dishes featuring salmon, sea trout, red snapper, and shrimp. Related: Popular casual restaurant chain files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
an hour ago
- Yahoo
Private equity giant prepares Pret a Manger for stock market listing
Pret a Manger is heading for a potential stock market listing as the coffee chain's private equity owners seek to offload the business. Luxembourg-based JAB Holding has appointed advisers to explore options for Pret, with a proposed flotation deemed the most likely option. This could include bringing in another investor to shore up Pret's finances, as the business has struggled to restore its profits post-Covid. A spokesman for JAB Holding told the Financial Times: 'As we move closer to a potential IPO [initial public offer], we may evaluate bringing on a pre-IPO investor.' A staple of commuter lunches, Pret runs more than 690 shops across the world including over 470 in the UK. However, it has steadily been expanding in the US and other markets, with New York now accounting for its highest sales outside of London. This raises questions over where JAB will look to list Pret, with a destination not yet decided. Any move to float Pret in New York would deal a further blow to the London Stock Exchange, which is already battling an exodus of companies and a dearth of new listings. JAB is majority owned by the Reimann family, a wealthy dynasty that also presides over the Krispy Kreme and Dr Pepper brands. It bought Pret for £1.5bn from US investment giant Bridgepoint in 2018, which had also explored listing the business in the US. The move towards a potential flotation comes after Pret's revenues soared in the last few years. System sales topped the £1bn mark in 2023 as it opened dozens of new stores and grew internationally. As well as a strong performance in New York and the US, it now operates in Greece, Canada, India, and Spain. However, its expansion has fuelled criticism of high prices and sparked questions over its debt pile. The company had borrowings of almost £750m at the end of 2023, accounts show, with investors being tapped for a £250m cash injection last September to shore up its balance sheet. The move to axe its subscription service, which offered customers five barista-made drinks per day for a monthly fee, also proved controversial. Introduced during the pandemic, the subscription was immensely popular and helped keep the company afloat. However, bosses were forced to raise the price of the subscription numerous times before eventually scrapping it altogether last year, sparking anger among its customers. It now offers a cheaper 'Club Pret' subscription, which offers 50pc off five drinks per day. Despite rising revenues, Pret has battled to stay in the black. After the closure of its shops during the pandemic pushed it to a pre-tax loss of £255m in 2021, it managed to turn a profit of £27m the following year. However, the latest available accounts for 2023 show it fell back into the red with a £60m loss. Pret a Manger declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
