Global events and information group DMGT has released half year results which show underlying growth in the B2B: Information Services division being offset by a huge fall in revenues from its B2B: Events & Exhibitions and Consumer Media businesses.
Overall reported revenues were down 16% for the group, and operating profit fell 17%.
DMGT’s cash operating income was down 11% at £66m, but the group reported a “strong financial position maintained” with pro forma net cash £293m and £362m of committed undrawn bank facilities.
The group Outlook stated that B2B Information Services were positioned for continued growth, while on the Events & Exhibitions side physical events were scheduled for H2 but there was a risk of further postponements or cancellations. The adjusted revenue results for the division showed a drop from £77m in half year 2020 to £4m for half-year 2021.
DMGT’s Consumer Media business remained “unpredictable”, the report said, being dependent on business confidence.
DMGT CEO Paul Zwillenberg (pictured), commenting on the half-year results, said:
“We created significant value for our shareholders during the first half, through active management of the portfolio and continued strong operational execution.
“We achieved an attractive price of c.US$410m for the disposal of Hobsons, our EdTech business. This equated to over 50x operating profit, clearly demonstrating the rewards of our approach to organic investment in our businesses and our focus on improved operational performance.
“Our financial flexibility enabled us to continue to invest in Cazoo through multiple funding rounds. Despite the near-term economic uncertainty, we had conviction in its opportunity to transform the used car market. Cazoo continues to go from strength to strength and its proposed SPAC combination on the New York Stock Exchange would value our stake at US$1.35bn, a return of eight times on our capital.
“I am also delighted to welcome New Scientist to our market-leading Consumer Media division. It is a high-quality, subscriptions-led business with great people and will further improve the quality of our revenues.
“From a financial and operational perspective, DMGT delivered a solid performance in the first half of the year. We achieved strong underlying growth in revenue and profits from our B2B Information Services businesses, where Property Information was a highlight. Within Consumer Media, there was good revenue and profit growth from MailOnline and a solid performance from the Mail print titles driving profit growth for the Mail businesses whilst, unsurprisingly, Metro and our Events business continued to be impacted by the pandemic.
“Five years into my tenure as CEO, I am incredibly proud of the hard work, creativity and commitment everyone at DMGT has demonstrated and what has been achieved as a result. I am excited and confident about our future as we continue to invest in our market-leading businesses and remain well placed to consider acquisitions to drive growth and create long-term value for shareholders.”