Informa plc: history, ownership, mission, how it works & makes money

A Brief History of Informa plc

Informa plc, established in 1998, has grown into one of the world's leading business intelligence, academic publishing, and events organizations. The company originated from the merger of six companies, including the Taylor & Francis Group, a publisher of academic journals and books.

By 2003, Informa had already established itself in the academic publishing realm and expanded its portfolio by acquiring several companies, including the UK-based publisher, Routledge. This strategic acquisition enhanced its academic offerings significantly.

In 2005, Informa acquired the assets of the American company, IIR Holdings, which allowed it to broaden its event management capabilities and enter new markets. The transaction was valued at approximately £300 million.

In 2010, Informa put forth a strong performance with revenues reaching approximately £1.46 billion. The company's strong revenue growth was attributed to its comprehensive portfolio of events and publications.

2014 was a pivotal year as Informa acquired the US-based publishing and events company, Penton, for $1.56 billion. This acquisition solidified its presence in the market and added substantial value to its business intelligence division.

In 2018, Informa completed a major strategic reorganization. This led to the establishment of three distinct divisions: Informa Connect, Informa Intelligence, and Informa Markets. The restructuring was intended to streamline operations and enhance focus on delivering value.

As of 2022, Informa reported revenues of £2.9 billion, a substantial increase driven largely by the recovery of its events business post-COVID-19. The company rebounded strongly, underscoring its resilience in the face of market challenges.

Informa's stock performance has shown significant improvement over the years. As of October 2023, Informa’s share price hovered around £7.45, reflecting a notable recovery from the pandemic-induced lows.

Further insights reveal that as of Q3 2023, Informa sustained a net debt of approximately £1.3 billion, a figure that reflects its ongoing commitment to maintaining financial stability while pursuing growth through acquisitions and expansions.

In terms of market capitalization, Informa plc reached approximately £4.76 billion in 2023, demonstrating its strong positioning within the industry amid considerable market fluctuations.

Looking ahead, Informa aims to enhance its digital offerings and continue expanding its global reach, with particular emphasis on the medical and academic sectors where it sees significant growth potential.

A Who Owns Informa plc

Informa plc, a leading provider of academic publishing, business intelligence, and events, has a diverse ownership structure that reflects its extensive market presence. As of the latest reports, the major shareholders of Informa plc include both institutional and retail investors. Here’s a breakdown of the ownership structure:

Among the institutional investors, the largest shareholders include:

Informa plc is listed on the London Stock Exchange under the ticker symbol INFA. As of the end of September 2023, the market capitalization of Informa plc stood at approximately £7.2 billion.

The company's financial performance has exhibited resilience. For the first half of 2023, Informa reported revenue of £1.8 billion, representing a growth of 7% year-over-year. The operating profit for the same period was reported at £350 million, up from £320 million in the previous year.

Moreover, Informa has a strong cash position, with cash and cash equivalents amounting to £500 million as of June 2023. The company also declared a dividend of £0.27 per share for the year 2023, highlighting its commitment to returning value to shareholders.

The executive leadership of Informa also has noteworthy stakes in the company. For instance, the CEO, Stephen A. Carter, holds approximately 0.1% of the shares, equating to around 600,000 shares as reported in the latest filings.

Informa plc Mission Statement

Informa plc, a leading international business-to-business information services group, focuses on delivering knowledge and connectivity through data-driven insights. Its mission statement emphasizes the importance of enabling customers to make informed decisions and achieve their objectives through their extensive portfolio of content and services.

The company operates in three key sectors: Academic Publishing, Business Intelligence, and Events. These sectors are geared towards providing essential resources that help businesses and institutions navigate complex market landscapes.

As of the latest financial reporting, Informa plc reported total revenues of 3,091 million for the year ending December 2022, with a total profit before tax of 660 million. The company's EBITDA margin was recorded at 34.2%, showing strong operational efficiency across its divisions.

Informa plc's mission statement further highlights its commitment to sustainability and responsible business practices. The company aims to reduce its environmental impact, investing £10 million annually into sustainability initiatives and aiming for a 50% reduction in carbon emissions by 2025.

The company has also set ambitious goals for customer engagement, targeting a 20% increase in customer satisfaction ratings over the next three years. This aligns with their mission to foster meaningful relationships with clients and stakeholders, ensuring that their offerings remain relevant and impactful.

Informa plc has a diverse client base, including over 150,000 customers worldwide. Their robust digital platform supports more than 30 million users annually, providing critical access to information that drives business growth and innovation.

In summary, Informa plc's mission statement encapsulates a strong commitment to delivering value through specialized knowledge, with a focus on sustainability, customer satisfaction, and operational excellence. The continuous growth across its sectors is indicative of the effectiveness of this mission in driving strategic objectives.

How Informa plc Works

Informa plc is a leading international business intelligence, academic publishing, and events organization. The company operates through three primary divisions: Informa Markets, Informa Connect, and Informa Intelligence. Each division specializes in various forms of knowledge transfer and information delivery.

Operational Segments

• Informa Markets: Focused on providing platforms for buyers and sellers to connect through exhibitions and trade shows. The segment generates around £1.1 billion in annual revenue.
• Informa Connect: This branch specializes in professional training and education, contributing about £700 million to the company’s revenue.
• Informa Intelligence: Offers data-driven insights and analytics, accounting for approximately £900 million in revenue.

Financial Performance

Informa plc reported a revenue of £3.13 billion for the fiscal year 2022, an increase from £2.50 billion in 2021. The company's net profit margin stands at 17%, reflecting solid operational efficiency.

Informa's earnings before interest, taxes, depreciation, and amortization (EBITDA) was reported at £950 million, with a year-over-year growth of 12%.

Key Financial Metrics (2022)

Market Presence

Informa operates in over 30 countries and hosts more than 550 events annually, attracting roughly 7 million participants. The company has a diverse customer base including corporations, academic institutions, and government agencies.

Investment and Acquisitions

Informa has been active in acquiring businesses to strengthen its portfolio. In 2021, it acquired MWC Barcelona assets for approximately £200 million. This strategic investment aims to enhance its position in the global trade show market.

Stock Performance

As of October 2023, Informa plc trades on the London Stock Exchange under the ticker symbol INF. The stock price has shown a steady increase, with a year-to-date return of approximately 15%.

The company’s current market capitalization is around £8.5 billion, positioning it among the top players in the business intelligence and events sectors.

Future Outlook

Analysts project Informa’s revenue to reach approximately £4 billion by 2025, fueled by growth in digital services and increased event participation as global economies rebound post-pandemic.

The company is also focusing on sustainability initiatives, aiming for a 30% reduction in operational carbon emissions by 2025.

How Informa plc Makes Money

Informa plc generates revenue through a diverse range of business segments primarily divided into three areas: Academic Publishing, Business Intelligence, and Global Exhibitions. Each segment contributes significantly to the company's overall financial performance.

Academic Publishing

Informa's Academic Publishing segment comprises renowned imprints such as Taylor & Francis, which publishes over 2,600 journals and around 4,000 books annually. In 2022, this segment reported revenues of approximately £1.1 billion, experiencing a growth of 5.7% year-over-year. The increasing demand for research outputs and academic content drives this revenue.

Business Intelligence

The Business Intelligence segment focuses on providing data, insights, and analysis to various sectors, including finance, healthcare, and technology. For the year ended December 2022, the segment generated revenues of around £1.05 billion, up by 3.2% from the previous year. Key offerings include subscription-based services and specialized market reports, which enhance recurring revenue streams.

Global Exhibitions

Informa's Global Exhibitions segment hosts a variety of live events, conferences, and trade shows across different sectors. This division faced significant challenges during the pandemic but rebounded strongly. For 2022, revenues reached approximately £571 million, marking a remarkable recovery with an increase of 96% compared to 2021, driven by the return of in-person events.

Informa also diversifies its income through digital services, providing webinars, online training, and virtual events. These initiatives have been pivotal, especially post-pandemic, contributing to the overall growth strategy.

Informa's strategy focuses on innovation and expanding its digital footprint, with approximately 40% of total revenue now derived from digital-related activities. Furthermore, investment in technology and data analytics enhances the ability to tailor services to a global clientele.

Geographical Revenue Breakdown

Informa's revenues are geographically diverse, with notable contributions from North America, Europe, and Asia. In 2022, North America accounted for about 45% of total sales, while Europe represented 35%, and Asia contributed 15% to total revenue.

The combination of robust segments and geographical diversification underpins Informa's revenue generation strategy, helping to stabilize the company's financial performance against market fluctuations.