Informa shares surge as company raises full-year revenue guidance

Informa PLC reported strong first-half operational results, with underlying revenue up 7.8% and adjusted operating profit increasing 24.0%, leading to a 5% surge in shares. Despite a statutory operating loss of £137.0 million due to a £484.2 million non-cash impairment related to Informa TechTarget, the company raised its full-year underlying revenue growth guidance from 5%+ to 6%±. Informa also announced an interim dividend increase and committed to an additional £150 million in share buybacks, signaling confidence in its operational momentum and outlook, particularly within its Live B2B Events segment.

Analysis

Informa PLC (LSE:INF.L) demonstrated strong first-half 2025 operational performance, driving a 5% increase in its share price. The company reported a 7.8% rise in underlying revenue and a significant 24.0% increase in adjusted operating profit to £578.9 million, expanding its adjusted margin to 28.4%. This robust underlying result was, however, masked at the statutory level by a £137.0 million operating loss, which was entirely attributable to a one-off, non-cash impairment charge of £484.2 million related to its holding in Informa TechTarget (NASDAQ:TTGT). The market's positive reaction indicates that investors are looking through this accounting adjustment to focus on the core business momentum. Management signaled strong confidence by upgrading full-year 2025 underlying revenue growth guidance to 6%± and its adjusted earnings growth forecast to 10%+. This outlook is supported by high revenue visibility, with approximately 80% of 2025 revenue already committed. Furthermore, the company reinforced its commitment to shareholder returns by increasing its interim dividend by 9.4% and announcing an additional £150 million in share buybacks, bringing the 2025 total to £350 million.

Key Decisions for Investors

• Investors should focus on the strong operational metrics, including the 24% growth in adjusted operating profit and upgraded full-year guidance, as the market is clearly discounting the one-off, non-cash nature of the TechTarget impairment.
• The combination of a 9.4% dividend increase and a total £350 million share buyback program for the year signals strong board confidence in future free cash flow, providing a solid underpinning for shareholder returns.
• Monitor the performance of the Live B2B Events segment, which is guided for 8%+ growth, and consider the high degree of revenue certainty, with 80% of 2025 revenue already visible, as a key de-risking factor for the company's outlook.