Ascential (ASCL) H1 2024 earnings summary

Executive summary

• Achieved 15% organic revenue growth and 27% adjusted EBITDA growth year-over-year for H1 2024, with strong performance in both Marketing and Financial Technology segments.

• Over £750 million was returned to shareholders via tender offer, special dividend, and buyback following major disposals.

• Board recommended a £1.2 billion cash acquisition offer from Informa, representing a premium of up to 53% to the pre-announcement share price, with completion expected in Q4 2024.

• Net cash position at 30 June 2024 was £22.4 million, a significant improvement from £318.1 million net debt at December 2023.

• Disposals of Digital Commerce and WGSN generated over £1.1 billion in net cash proceeds and a pre-tax profit of £516 million.

Financial highlights

• Revenue for H1 2024 was £158 million, up from £136 million in H1 2023, reflecting 15% organic constant currency growth.

• Adjusted EBITDA reached £65 million, up 27% year-over-year, with margin increasing to 41% from 38% in H1 2023.

• Adjusted diluted EPS for continuing operations was 11.9p (H1 2023: 7.0p); total diluted EPS 125.2p, reflecting large gains from disposals.

• Operating cash flow conversion was 100%, ending the half with a net cash position of £22.4 million.

• Profit after tax for discontinued operations was £428.5 million, including £516.2 million pre-tax profit on disposal of Digital Commerce and WGSN.

Outlook and guidance

• Expecting constant currency revenue growth rates towards the top end of medium-term target range for 2024.

• 2025 expected to benefit from strong momentum in the Marketing division, with sponsorship bookings ahead of last year.

• Money20/20 US forward bookings for October 2024 are in line with the prior year.

• Corporate costs for the year expected to be slightly above £13 million, likely around £14 million.