Release Date: July 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ascential PLC (FRA:A040, Financial) reported strong double-digit organic revenue growth of 15% and adjusted EBITDA growth of 27% for the first half of 2024.
- The company successfully launched Money 20/20 Asia in Bangkok, establishing a significant presence in a valuable market.
- Ascential PLC returned over GBP750 million to shareholders through a tender offer, special dividend, and buyback program.
- The company's marketing division, including the Lions brand, achieved strong growth with revenues up 15% and profits up 13%.
- The Board recommended Informa's offer to buy the group, which represented a premium of more than 50% compared to the share price before the news broke.
Negative Points
- The European edition of Money 20/20 saw an 8% revenue reduction due to end-market funding disruption in the fintech market.
- Hudson MX remains held for sale, with a write-down of GBP21 million due to updated trading and economic conditions.
- The sale process for Hudson MX is ongoing, with no certainty of completion, potentially affecting shareholder returns.
- Corporate costs are expected to be slightly above the previously guided GBP13 million for the second half of the year.
- The company's investment in new digital products, such as Twentyfold, is impacting margins, with additional costs expected in the second half.
Q & A Highlights
Q: What is driving the strong momentum in the marketing segment, and how does it impact next year?
A: Philip Thomas, Chief Executive, explained that the momentum is driven by strong sponsorship bookings, which are ahead of last year, and the successful events this year. Historically, successful events translate into strong growth for the following year, absent any major disruptions like COVID or a financial crisis.
Q: Regarding the Hudson sale, why wouldn't potential buyers wait until the last moment to get the best price?
A: Mandy Gradden, CFO, stated that Ascential has been highly motivated to execute the sale of Hudson since October 2023, and this motivation remains unchanged.
Q: What is the outlook for the financial technology segment, specifically Money 20/20 USA, and what can be expected for margins?
A: Philip Thomas noted that both sponsorship and delegate revenues are tracking in line with last year. Mandy Gradden added that margins will not vary significantly in the second half, except for costs associated with the new digital product, Twentyfold.
Q: Was Money 20/20 Asia profitable at the gross margin level?
A: Mandy Gradden confirmed that Money 20/20 Asia was slightly profitable at the gross margin level.
Q: What is Hudson's current monthly cash burn, and what level of fees are anticipated on its disposal?
A: Mandy Gradden stated that Hudson's current monthly cash burn is between $3 million and $4 million. However, the level of fees anticipated on the disposal is not disclosed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
