Our strategy is to manage a portfolio of businesses in markets where information, data and convening market participants are valued. We deliver products and services that support our clients’ critical activities.
In particular, we look to serve markets which are semi-opaque; that is, where there is information which organisations need in order to operate effectively but the information is hard to find. Price discovery is a good example.
We characterise the business models of B2B information companies into three generations, which we call B2B information 1.0, 2.0 and 3.0. Their characteristics are as follows:
Euromoney has been successful in becoming a 2.0 business over the past 10 or more years. We are n becoming a 3.0 business, pacing the transition to meet and anticipate our customers’ needs.
As we manage our portfolio to achieve our strategy, we categorise our businesses into four quadrants:
1. Invest around big themes
These include price discovery, post-trade activities, asset management and telecomms
2. Transform the operating model
There are two aspects to our model. One is our target business model:
The second is what we call a “best of both worlds” operating model. Euromoney is known for its entrepreneurial culture – our people are creative, action-oriented, close to their customers, passionate about their brands, knowledgeable about the industries they serve and accountable for their results. Alongside, we are building strong central functions to support the businesses and to ensure we take advantage of Euromoney’s scale, share best practice, operate strategically and create career paths for staff across the whole company.
3. Actively manage the portfolio
Acquisitions have always been, and remain, an important part of Euromoney’s strategy. We have a record of identifying good businesses where our ownership adds value. In many cases, we buy founder-run businesses; and those founders often stay and grow their business within Euromoney.
We also sell businesses where we believe we are not the best owners, and to generate funds (alongside our strong cash-flows and debt capacity) to invest in the themes discussed above.
Our strategy is designed to develop the businesses we own and deliver strategic, timely, and well-executed acquisitions and disposals. We aim to allocate and recycle capital efficiently to good organic and inorganic opportunities via our “best of both worlds” operating model. Our ambition is to generate consistent and meaningful returns for our shareholders at relatively low risk.
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