UK-based business publishing giant Informa (LON:INF) posted 24 percent better profits of £116 million, on 10 percent better revenue of £533 million, for the first half of the year, helped by a number of online initiatives. Amongst the highlights…
— Profit in the professional unit was up £4 million to £38 million, driven mainly by online subscriptions, in particular to the i-law.com online legal portal.
— 95 percent of all subscription and license revenue is now digital. In the release, the company said it had invested digitally to ensure it could benefit form customization, speed and greater reach.
— The company proudly trumpeted, in the release, it has “very little reliance on advertising revenues”, accounting for just three percent. CEO David Gilbertson at Telegraph.co.uk: “We have tried to build a business that is more resilient to economic changes, by having a lot of paid-for content, little advertising and a diverse geographic base.”
— Revenue growth at market intelligence firm Datamonitor, which Informa bought in May for £504 million ($994 million), were up 62 percent and Informa said the acquisition further supports its move toward digital information as all of its products are delivered electronically. UBS analyst Polo Tang, in Telegraph.co.uk: “The Datamonitor acquisition appears to be exceeding expectations.”
— Ingrid adds: Further acquisitions. In a Guardian article, CEO Gilbertson is quoted saying Informa would continue to look for “bolt-on” and “in-fill” acquisitions. But it will not be bidding for the B2B assets of Emap, which has effectively put all its divisions — B2B publishing, consumer media and radio — up for sale in what analysts say could collectively go for around 2.5 billion pounds ($5 billion). Gilbertson: “We’ve just debt-financed half a billion pounds to buy Datamonitor and we’re very focused on integrating that business and that’s really where our attention will be.” He added though if Emap were to shed certain assets (which could be some titles or conferences), the B2B division could look more attractive. “If there was a real atomisation of the Emap business that might fit with our bolt-on and in-fill plans.”