Informa profit plunges as pandemic shutters events
Events group Informa forecast a plunge in profit in 2020 as the coronavirus pandemic brought the events industry to its knees.
The FTSE 100 firm, which is the world’s largest exhibitions group, said it expected adjusted operating profit in the range of £250 and £270m. This is down from £933m in 2019.
Revenue is set to reach roughly £1.6bn, compared to £2.9bn the previous year.
Informa, which runs events including the China Beauty Expo and the Monaco Yacht Show, has been hit hard by the Covid-19 crisis, with in-person events around the world grinding to a halt.
The company said some events had resumed in mainland China and Asia, while the rollout of vaccines in Europe and North America provided optimism for recovery in 2021.
Informa said it was on track to hit its target of £600m in cost savings by the end of the year, including £400m in direct savings to operating profit and £200m annualised indirect savings.
The exhibition group has shifted its focus more towards virtual events and its digital services, which include academic publisher Taylor & Francis and the historic Lloyd’s List shipping journal.
The firm said this portfolio of subscription-led businesses had continued to perform well in 2020, delivering positive underlying growth for the year.
Informa today also confirmed the appointment of John Rishton as its new chair, replacing Derek Mapp.
Rishton, who serves on Informa’s board and has also held non-executive roles at Unilever and Serco, will take over as chair at the annual general meeting in June.
Chief executive Stephen A. Carter said: “The Informa group enters 2021 with an intention to use the progressive return from Covid-19 to deepen our use of digital and data services, thereby ensuring our products and brands remain relevant in a post pandemic world.
“The continued strength and growth of our subscription businesses and our prior decision to extend the physical Events Postponement Programme should serve us well as markets gradually open up and customer confidence recovers in the latter half of 2021. Equally important, will be our continued commitment to strengthening our digital and data capabilities.”