International trade show organizer Informa has announced a remarkable growth rate of over 10% in their latest trading update. This impressive statement was released in conjunction with the group’s Annual General Meeting, confirming their continued robust performance.
Stephen A. Carter, the Group Chief Executive of Informa, highlighted the company’s success by stating, “The Informa Group has changed gears and we are now delivering 10%+ growth.” He attributed this growth to their strategic focus on specialist markets, unique content, and internationalization. This strategy has resulted in double-digit underlying revenue growth, margin expansion, and an increase in profits and cash flows.
Strong Performance Across All Sectors
Informa’s trading update revealed several highlights:
Strong Growth: The group reported a five-month underlying revenue growth of 10.1%, reflecting robust operational performance across all businesses.
Increasing Visibility: Year-to-date revenues of approximately £1.4bn have been delivered, with an additional £1bn of Subscriptions/Exhibitor revenue committed and visible for 2024. Strong event rebooking into 2025 further bolsters this outlook.
Balance Sheet Strength: Informa’s operating performance, free cash flow growth, and disciplined capital allocation have led to enhanced credit ratings. Both Moody’s and S&P Global upgraded Informa’s credit ratings to Baa2 and BBB respectively. The company is on track to achieve over £720m in free cash flow in 2024.
B2B Markets: There is strong demand for high-quality, live B2B experiences. Informa’s investment in digital platforms and first-party data is driving value growth and volume expansion in all major geographic regions.
AI Acceleration: The deployment of AI technology across the group is delivering significant product benefits and operating efficiencies. This includes advancements in research submission, data validation, and content summaries. Additionally, Informa is exploring specialist expert agents through a non-exclusive Partnership and Data Access Agreement with a major AI/Large Language Model buyer.
Creation of US-listed New TechTarget: Informa Tech’s Digital Businesses (Industry Dive, Omdia, Canalys, NetLine, and the Digital Media Brands) are set to combine with NASDAQ-listed TechTarget. This combination is on track to complete in Q4 2024, creating a leading B2B Digital Services business by the end of the year.
Expanding Shareholder Returns and Strategic Partnerships
Accelerating Shareholder Returns: The company’s operating momentum and strong cash conversion continue to support increasing shareholder returns. Informa has expanded its 2024 share buyback program by 50% to £0.5bn, with over £0.3bn already completed.
Partnership Growth and Acceleration: Informa’s development of partnerships to accelerate expansion in key regions and markets is yielding strong growth. Significant progress has been made in Saudi Arabia (Tahaluf, c.51% shareholding) and China (Sinoexpo, c.70% shareholding).
Market Guidance Reaffirmed: Informa remains on track to deliver at the upper end of the 2024 guidance range, excluding any effects from the proposed combination with TechTarget and based on a GBP/USD exchange rate of 1.25. The group’s targets are set at:
- Group Revenue: £3,450m to £3,500m
- Group Adjusted Operating Profit: £950m to £970m
- Group Adjusted Free Cash Flow: £720m+
Informa’s strategic initiatives and strong performance across all sectors highlight its commitment to sustained growth and innovation. The company’s focus on leveraging AI technology, expanding digital platforms, and forming strategic partnerships positions it for continued success in the global market.
