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, leading to upgraded full-year guidance.

• Announced a recommended £1.2bn cash offer for Ascential plc, completing a multi-year capital recycling program and positioning for further B2B growth.

• Continued focus on specialist B2B and advanced education markets, leveraging marquee brands and expanding internationally.

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

• Ongoing investment in AI partnerships and product innovation, especially in Taylor & Francis.

Financial highlights

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

• Adjusted diluted EPS: 23.8p (+5.8% YoY); interim dividend up 10.3% to 6.4p per share.

• Free cash flow rose 27.1% 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; available liquidity of £1.2bn.

Outlook and guidance

• Upgraded 2024 guidance: revenue over £3.5bn, adjusted operating profit up to £1bn, free cash flow to £740m+.

• Targeting further margin improvement to around 28% for the full year.

• Guidance excludes potential upside from TechTarget and Ascential combinations.

• Strong forward bookings and visibility into 2025, especially for marquee brands.

• AI partnerships expected to contribute $75m+ in 2024.