Euromoney profits fall 25%

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The Independent Online
Euromoney Publications, the specialist magazine publisher, shares in which fell by a quarter after a profits warning last month, has reported a 25 per cent fall in profits to pounds 18.2m for the year to September.

The company had warned of the fall, causing the shares to plunge by more than 300p last month, bringing to an end one of the most impressive success stories in the publishing sector in recent years.

Euromoney blamed losses in new offices in Frankfurt, Paris and Jakarta as well as disappointing attendances at its seminars. The Mexican peso crisis had hit the businesses in the emerging markets while the Barings crisis and the consolidation in the bank sector also held back demand for training courses, exhibitions and seminars.

The company said it expected to recover from the setback and that the rationalisation at the AIC conference division was continuing. This includes job cuts and the closure of the Amsterdam office. Euromoney has been building its stake in AIC and holds 70 per cent of the group, which accounts for more than half of group sales.

However, it is a lower-margin business susceptible to lower sales.

While attendances at the divisions main conferences have been maintained, seminar attendances have been lower and some have had to be cancelled.

The group's magazines and other businesses remained strong, it said. The dividend was increased from 42.5p to 43.5p.