Informa LEI: 5493006VM2LKUPSEDU20
Informa
PLC Press Release
21 June 2024
AGM Trading Update
Continuing momentum and
growth
Informa (LSE: INF.L), the
international B2B Events, B2B Digital Services and Academic Markets
Group today published a trading update to coincide with its Annual
General Meeting, confirming continuing strong growth and
reiterating full-year guidance.
Stephen A.
Carter, Group Chief Executive,
Informa, said:
"The Informa Group has changed gears
and we are now delivering 10%+ growth."
He added:
"Our strategy to focus on specialist markets,
unique content and internationalisation is delivering double-digit
underlying revenue growth, margin expansion and increasing profits
and cash flows."
|
Highlights
· Strong
growth...Five-month Group underlying revenue growth of
10.1%, reflecting strong operational performances across all
businesses;
· Increasing visibility...Revenues of
c.£1.4bn delivered year to date, with a further c.£1bn of
Subscriptions / Exhibitor revenue committed and visible in 2024,
and strong Events rebooking into 2025;
· Balance Sheet
strength...Operating performance, free cash
flow growth and capital allocation discipline reflected in enhanced
credit ratings, with Moody's and S&P Global upgrading to Baa2
and BBB respectively; On track for
£720m++ of Free Cash Flow in 2024;
· B2B
Markets…Strong demand for high quality,
live B2B experiences combined with Informa's investment in digital
platforms and first party data is driving value growth and volume
expansion in all major geographic regions; On track for high single digit underlying
revenue growth in 2024;
·
Academic Markets…Consistent growth in global research output combined with
Informa's investment in author services and Pay-to-Publish
platforms is delivering strong subscription renewals and open
research acceleration; On track
for 5%+ underlying revenue growth in 2024;
·
AI
acceleration...Continuing deployment of AI
technology across the Group delivering product benefits and
operating efficiencies, including in research submission, data
validation and content summaries. Further exploration of specialist
expert agents underway through non-exclusive Partnership and Data
Access Agreement with major AI/Large Language Model
buyer;
· Creation of US-listed New TechTarget…Proposed combination of Informa Tech's Digital Businesses
(Industry Dive, Omdia, Canalys,
NetLine and the Digital
Media Brands) with NASDAQ-listed TechTarget on track to
complete in Q4 2024, creating a leading B2B Digital Services
business by the end of 2024;
· Accelerating
shareholder returns...Operating momentum
and strong cash conversion continues to support increasing
shareholder returns, with 2024 share buyback programme recently
expanded 50% to £0.5bn, of which over
£0.3bn completed to date;
· Partnership growth
and acceleration…Informa's strength in
developing partnerships to accelerate expansion in key regions and
markets continues to deliver strong growth in Saudi Arabia (Tahaluf, c.51%
shareholding) and China
(Sinoexpo, c.70% shareholding), as well as in Retail Banking Intelligence (Curinos,
c.56% shareholding) and Beauty (BolognaFiere, c.13.5%
shareholding);
· Market
guidance reaffirmed...On track to deliver
at the upper end of the 2024 guidance range (Excludes any effect of
the proposed combination with TechTarget, GBP / USD
1.25):
· Group Underlying
Revenue Growth: High single digit
· Group Revenue:
£3,450m to £3,500m
· Group Adjusted Operating
Profit: £950m to £970m
· Group Adjusted Free Cash
Flow: £720m++
Enquiries
|
|
Stephen A. Carter, Group Chief Executive
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+44 (0) 20 8052 0400
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Gareth Wright, Group Finance Director
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+44 (0) 20 8052 0400
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Richard Menzies-Gow,
Director of IR & Communications
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+44 (0) 20 8052 2787
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Tim Burt / Anthony Di Natale
- Teneo
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+44 (0) 7583 413254 / +44 (0) 7880
715975
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About TechTarget
TechTarget (NASDAQ: TTGT) is a
global leader in purchase intent-driven marketing and sales
services that deliver business impact for enterprise technology
companies. By creating abundant, high-quality editorial content
across approximately 150 websites and 1,000 webinars and virtual
event channels, TechTarget attracts and nurtures communities of
technology buyers researching their companies' information
technology needs. By understanding these buyers' content
consumption behaviours, TechTarget creates the purchase intent
insights that fuel efficient and effective marketing and sales
activities for clients around the world.
TechTarget has offices in Boston,
London, Munich, New York, Paris, Singapore and Sydney. For more
information, visit techtarget.com and follow us on Twitter
@TechTarget.
In 2023, TechTarget reported revenue
of $230m and income before provision for income taxes of $14.4m.
Its reported gross assets at 31 December 2023 were
$699.9m.
About Informa Tech
Informa Tech is a leading provider
of market insight and market access to the global business
technology community. Through in-depth expertise and an engaged
audience community, Informa Tech helps business professionals make
better technology decisions and marketers reach the most powerful
tech buyers and influencers in the world. Across its portfolio of
over 100+ trusted brands, Informa Tech has over 1,000 industry
experts, including over 400 research analysts and consultants in
global research group Omdia, and a monthly audience reach of over
125 million. Informa Tech is a division of FTSE 100 company Informa
plc. For more information, visit informatech.com
The digital businesses of Informa
Tech proposed to be combined with TechTarget include Industry Dive
(Specialist B2B Content/Brands), Omdia (Specialist Tech Research),
NetLine (Demand Generation and Buyer Intent), and other Specialist
Tech Digital Media Brands (eg Information Week, Light Reading,
Heavy Reading, AI Business).
In 2022, these digital businesses
delivered revenue of £220.7m and statutory profit before tax, post
exceptional and amortisation costs of £2.9m.
Additional Information and Where to
Find It
In connection with the proposed
transaction (the "proposed transaction")
between Informa and TechTarget,
TechTarget CombineCo, Inc.
("CombineCo" or, after the completion of
the proposed transaction, "NewCo" or "New TechTarget") and TechTarget
will prepare and file relevant materials with the
Securities and Exchange Commission (the "SEC"), including a registration
statement on Form S-4 that will contain a proxy statement of
TechTarget that also constitutes a prospectus of CombineCo (the
"Proxy
Statement/Prospectus"). A definitive Proxy
Statement/Prospectus will be mailed to stockholders of TechTarget.
TechTarget and CombineCo may also file other documents with the SEC
regarding the proposed transaction. This communication is not a
substitute for any proxy statement, registration statement or
prospectus, or any other document that TechTarget or CombineCo (as
applicable) may file with the SEC in connection with the proposed
transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION,
INVESTORS AND SECURITY HOLDERS OF TECHTARGET ARE URGED TO READ
CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT/PROSPECTUS WHEN
IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS THAT ARE
FILED OR WILL BE FILED BY TECHTARGET OR COMBINECO WITH THE SEC, AS
WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, IN
CONNECTION WITH THE PROPOSED TRANSACTION, WHEN THEY BECOME
AVAILABLE BECAUSE THESE DOCUMENTS CONTAIN OR WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS.
TechTarget investors and security holders will be able to obtain
free copies of the Proxy Statement/Prospectus (when they become
available), as well as other filings containing important
information about TechTarget, CombineCo, and other parties to the
proposed transaction (including Informa), without charge through
the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by TechTarget
will be available free of charge under the tab "Financials" on the
"Investor Relations" page of TechTarget's internet website at
www.TechTarget.com or by contacting TechTarget's Investor Relations
Department at investor@TechTarget.com.
Participants in the
Solicitation
Informa, TechTarget, CombineCo, and
their respective directors and certain of their respective
executive officers and employees may be deemed to be participants
in the solicitation of proxies from TechTarget's stockholders in
connection with the proposed transaction. Information regarding the
directors of Informa is contained in Informa's annual reports and
accounts available on Informa's website at
www.informa.com/investors/
and in the National Storage Mechanism at
data.fca.org.uk/#/nsm/nationalstoragemechanism. Information
regarding the directors and executive officers of TechTarget is
contained in TechTarget's proxy statement for its 2023 annual
meeting of stockholders, filed with the SEC on April 19, 2023,
and in other documents subsequently filed with the SEC. Additional
information regarding the participants in the proxy solicitations
and a description of their direct or indirect interests, by
security holdings or otherwise, will be contained in the Proxy
Statement/Prospectus and other relevant materials filed with the
SEC (when they become available). These documents can be obtained
free of charge from the sources indicated above.
No Offer or Solicitation
This is for informational purposes
only and is not intended to and does not constitute an offer to
sell or the solicitation of an offer to buy any securities, or a
solicitation of any vote or approval, nor shall there be any offer,
solicitation or sale of securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. No offer of securities shall be made except by means
of a prospectus meeting the requirements of Section 10 of the
Securities Act of 1933, as
amended.
Cautionary Note Regarding
Forward-Looking Statements
This contains "forward-looking"
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 that
involve substantial risks and uncertainties. All statements, other
than historical facts, are forward-looking statements, including:
statements regarding the expected timing and structure of the
proposed transaction; the ability of the parties to complete the
proposed transaction considering the various closing conditions;
the expected benefits of the proposed transaction, such as improved
operations, enhanced revenues and cash flow, synergies, growth
potential, market profile, business plans, expanded portfolio and
financial strength; the competitive ability and position of NewCo
following completion of the proposed transaction; legal, economic,
and regulatory conditions; and any assumptions underlying any of
the foregoing. Forward-looking statements concern future
circumstances and results and other statements that are not
historical facts and are sometimes identified by the words "may,"
"will," "should," "potential," "intend," "expect,"
"endeavor," "seek," "anticipate," "estimate," "overestimate,"
"underestimate," "believe," "plan," "could," "would," "project,"
"predict," "continue," "target," or the negatives of these words or
other similar terms or expressions that concern TechTarget's or
CombineCo's expectations, strategy, priorities, plans, or
intentions. Forward-looking statements are based upon current
plans, estimates, and expectations that are subject to risks,
uncertainties, and assumptions. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
indicated or anticipated by such forward-looking statements. We can
give no assurance that such plans, estimates, or expectations will
be achieved, and therefore, actual results may differ materially
from any plans, estimates, or expectations in such forward-looking
statements.
Important factors that could cause
actual results to differ materially from such plans, estimates, or
expectations include, among others: that one or more closing
conditions to the proposed transaction, including certain
regulatory approvals, may not be satisfied or waived, on a timely
basis or otherwise, including that a governmental entity may
prohibit, delay, or refuse to grant approval for the consummation
of the proposed transaction, may require conditions, limitations,
or restrictions in connection with such approvals or that the
required approval by the shareholders of TechTarget may not be
obtained; the risk that the proposed transaction may not be
completed in the time frame expected by Informa, TechTarget, or
CombineCo, or at all; unexpected costs, charges, or expenses
resulting from the proposed transaction; uncertainty of the
expected financial performance of NewCo following completion of the
proposed transaction; failure to realize the anticipated benefits
of the proposed transaction, including as a result of delay in
completing the proposed transaction or integrating the relevant
portion of the Informa Tech business with the business of
TechTarget; the ability of NewCo to implement its business
strategy; difficulties and delays in achieving revenue and
cost synergies of NewCo; the occurrence of any event that could
give rise to termination of the proposed
transaction; potential litigation in connection with the
proposed transaction or other settlements or investigations that
may affect the timing or occurrence of the proposed transaction or
result in significant costs of defense, indemnification, and
liability; evolving legal, regulatory, and tax regimes; changes in
economic, financial, political, and regulatory conditions, in the
United States and elsewhere, and other factors that contribute to
uncertainty and volatility, natural and man-made disasters, civil
unrest, pandemics, geopolitical uncertainty, and conditions that
may result from legislative, regulatory, trade, and policy changes
associated with the current or subsequent U.S.
administration; risks related to disruption of management
time from ongoing business operations due to the proposed
transaction; certain restrictions during the pendency of the
proposed transaction that may impact TechTarget's ability to pursue
certain business opportunities or strategic transactions;
Informa's, TechTarget's, and NewCo's ability to meet expectations
regarding the accounting and tax treatments of the proposed
transaction; the risk that any announcements relating to the
proposed transaction could have adverse effects on the market price
of TechTarget's common stock; the risk that the proposed
transaction and its announcement could have an adverse effect on
the ability of TechTarget to retain customers and retain and hire
key personnel and maintain relationships with customers, suppliers,
employees, stockholders, strategic partners and other business
relationships and on its operating results and business generally;
market acceptance of TechTarget's and the relevant portion of the
Informa Tech business's products and services; the impact of
pandemics and future health epidemics and any related economic
downturns, on TechTarget's business and the markets in which it and
its customers operate; changes in economic or regulatory conditions
or other trends affecting the internet, internet advertising and
information technology industries; data privacy and artificial
intelligence laws, rules, and regulations; the impact of foreign
currency exchange rates; certain macroeconomic factors facing the
global economy, including instability in the regional banking
sector, disruptions in the capital markets, economic sanctions and
economic slowdowns or recessions, rising inflation and interest
rate fluctuations on TechTarget's and the relevant portion of the
Informa Tech business's results; and other matters included in
TechTarget's filings with the SEC, including in Item 1A of its
Annual Report on Form 10-K for the year ended December 31, 2022 and
its Quarterly Report on Form 10-Q for the quarter ended September
30, 2023. These risks, as well as other risks associated with the
proposed transaction, will be more fully discussed in the Proxy
Statement/Prospectus that will be included in the registration
statement on Form S-4 that will be filed with the SEC in connection
with the proposed transaction. While the list of factors presented
here is, and the list of factors to be presented in registration
statement on Form S-4 will be, considered representative, no such
list should be considered to be a complete statement of all
potential risks and uncertainties. Unlisted factors may present
significant additional obstacles to the realization of
forward-looking statements. We caution you not to place undue
reliance on any of these forward-looking statements as they are not
guarantees of future performance or outcomes and that actual
performance and outcomes, including, without limitation, our actual
results of operations, financial condition and liquidity, and the
development of new markets or market segments in which we operate,
may differ materially from those made in or suggested by the
forward-looking statements contained in this
communication.
Any forward-looking statements speak
only as of the date of this communication. None of Informa,
TechTarget, or CombineCo undertakes any obligation to update any
forward-looking statements, whether as a result of new information
or developments, future events, or otherwise, except as required by
law. Neither future distribution of this communication nor the
continued availability of this communication in archive form on
TechTarget's website at www.TechTarget.com or Informa's website
at www.informa.com/investors
should be deemed to constitute an update or
re-affirmation of these statements as of any future
date.