Euromoney Institutional Investor PLC ("Euromoney") is a global, multi-brand information business which provides critical data, price reporting, insight, analysis and must-attend events to financial services, commodities, telecoms and legal markets. Euromoney is listed on the London Stock Exchange and is a member of the FTSE 250 share index
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 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. Our businesses are grouped into divisions. Alongside, we have 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 to recycle and allocate capital based on our quadrants framework towards investment themes where we can develop 3.0 businesses in semi-opaque, defensible markets by operating our best-of-both-worlds model and actively managing our portfolio.
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