Informa (INF) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 results with double-digit growth in revenue, operating profit, earnings, cash flow, and dividends, marking the seventh consecutive upgrade in performance.

• Upgraded full-year 2024 guidance, now targeting up to £1bn in adjusted operating profit and over £3.5bn in revenue.

• Announced a recommended £1.2bn cash offer for Ascential plc, completed the acquisition of Solar Media, and continued a multi-year capital recycling program.

• Credit ratings upgraded by Moody's, S&P Global, and Fitch, reflecting balance sheet strength and substantial liquidity.

• Strategic expansion in advanced education, specialist B2B services, and AI partnerships, with a focus on recurring and repeatable revenues.

Financial highlights

• H1 2024 revenue: £1,695m (+11.5% YoY); adjusted operating profit: £467m (+12.9% YoY); underlying revenue up 11%.

• Adjusted diluted EPS increased 5.8% to 23.8p; interim dividend up 10.3% to 6.4p per share.

• Free cash flow rose 27% year-over-year to £286m; cash conversion at 79%.

• Adjusted operating margin improved to 27.5% (H1 2023: 27.2%).

• Net debt increased to £1,712.6m, mainly due to buybacks and acquisitions.

Outlook and guidance

• Full-year 2024 guidance upgraded: double-digit underlying revenue growth, revenue over £3.5bn, adjusted operating profit up to £1bn, and free cash flow of £740m+.

• Margin expected to improve further to around 28% for the full year.

• Guidance excludes potential upside from TechTarget and Ascential combinations.

• Strong forward visibility into 2025, especially for Marquee Brands and Informa Markets.

• B2B and Academic Markets both expected to deliver double-digit underlying revenue growth, with AI partnerships contributing $75m+ in 2024.