DMGT reports 6% drop in total revenue, slight increase when leaving out Euromoney stake
LONDON, UK — May 25, 2017 — Performance broadly in line with expectations
- Group revenue up underlying# 1% and adjusted operating profit down underlying 11%, reflecting:
- encouraging dmg media performance, MailOnline making good progress
- RMS(one) amortisation and investment in Xceligent, as expected
- Strategy on track and good progress against DMGT’s three strategic priorities
# Underlying revenue and operating profit growth rates are on a like-for-like basis, at constant exchange rates, after adjusting for the timing of events, for acquisitions and for disposals, notably Euromoney which is excluded from the growth rates.
As in previous years, the IFRS figures (“Statutory results”) have been adjusted* for exceptional items and the inclusion of discontinued operations (“Adjusted results”).
In December 2016, DMGT reduced its stake in Euromoney from c.67% to c.49% and Euromoney ceased to be a subsidiary of DMGT and became an associate. Euromoney is therefore treated as a discontinued operation and its performance is excluded from statutory results, other than earnings per share. DMGT’s adjusted results in the table above include 100% of Euromoney’s revenues and operating profits whilst it was a subsidiary during Half Year 2016 and the first quarter of the current year. Thereafter, from January to March 2017, the performance of DMGT’s c.49% stake in Euromoney is only included within joint ventures and associates, which is reflected in the adjusted profit before tax and adjusted earnings per share figures.
To allow for a like-for-like comparison, 2016 pro forma† results (“Pro Forma results”) have been presented as based on a c.67% stake in Euromoney during the first quarter of the year and a c.49% stake during the second quarter, consistent with the actual holding during Half Year 2017. Except where stated otherwise, commentary throughout this report compares Half Year 2017 adjusted results with the pro forma results.
Half Year Highlights:
- Group revenue up underlying# 1%, pro forma† and statutory revenue up 5%; adjusted operating profit down underlying 11%
- B2B: revenue up underlying 1% and adjusted profit down underlying 20%, reflecting the start of RMS(one) amortisation and investment in Xceligent
- Consumer: encouraging performance from dmg media; underlying revenue stable; adjusted profit up underlying 5%, with MailOnline making good progress on path to profitability
- Adjusted profit before tax* (PBT) of £105m, down 8% on a pro forma† basis
- Adjusted earnings per share* (EPS) of 24.6p, down 8% on a pro forma† basis. Interim dividend increased by 3%
- Statutory PBT down 76%, statutory EPS of 155.8p, up 204%, including £509 million profit on Euromoney transaction
- Reduction of stake in Euromoney from c.67% to c.49%; net debt reduced to £551 million with net debt:EBITDA ratio of 1.6
- Outlook for the Full Year largely unchanged; strategy on track
- Appointment of Tim Collier as Group CFO with effect from 2 May 2017
Paul Zwillenberg, Chief Executive, commented:
“DMGT’s performance in the first half was broadly in line with our expectations. We delivered underlying revenue growth for the Group, highlighting the benefit of a diversified portfolio. We are encouraged by the underlying profit performance at dmg media, where MailOnline continues to increase its revenue, taking real strides on its path to profitability. Gains across the portfolio are offset by more challenging conditions for some of dmg information’s businesses and by our planned investment in growth areas such as Xceligent.
We have made good progress against the three strategic priorities during this period of transition, through improving operational execution, increasing portfolio focus and enhancing financial flexibility. The Euromoney transaction was the first significant step in increasing our portfolio focus, alongside strengthening the balance sheet and enhancing our financial flexibility. We are working hard across the Group to improve operational execution and are particularly encouraged by the successful launch of Risk Modeler for RMS(one), a key milestone for the business.
In the second half of the year, although we expect challenging market conditions to persist for some of our businesses, we will continue to focus on improving operational execution and completing our strategic portfolio review during this period of transition. We remain confident that our focus and commitment to reinvigorate and re-shape DMGT will deliver growth in the long-term.”