07-03-2025
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.
