Informa’s Momentum Builds: Q1 Revenue Surge Fuels Confident Outlook

Informa PLC (INF) has kicked off 2025 with a strong performance, reporting a 7.6% increase in underlying revenue for Q1, outpacing its full-year target of over 5% growth. This robust start, combined with £2.5 billion in committed revenue by May—61% of its £4.1 billion annual goal—signals that the company’s strategic pivot toward high-growth markets and digital innovation is paying off.

Q1 Performance and Forward Visibility

The first quarter’s results are particularly impressive given that £1.7 billion (40% of the 2025 target) was already secured through subscriptions, recurring exhibitor revenues, and forward contracts before the year began. By May, this figure had risen to £2.5 billion, surpassing 2024’s progress. Management emphasized that this forward visibility is a product of its “One Informa” strategy, which integrates its 800+ market-leading brands across B2B events, digital services, and academic publishing.

Key Drivers of Growth

1. Geographic Expansion:
   The proposed joint venture with Dubai World Trade Centre (DWTC) in the Gulf Cooperation Council (GCC) region is a cornerstone of growth. The combined entity aims to generate $700 million+ in annual revenue with 30%+ operating margins, targeting sectors like healthcare, energy, and ICT. This partnership leverages the GCC’s rapid economic expansion and its status as a hub for global trade shows.

2. Structural Strength:
   B2B live events remain a core revenue driver. Informa’s focus on micro-market engagement—such as niche industry conferences and exhibitions—has proven resilient to macroeconomic volatility. For example, its IIRIS data platform enables hyper-targeted marketing, while its AI-powered assistant Elysia enhances client engagement and upselling opportunities.

3. Digital and AI Integration:
   Tools like Elysia and data analytics are streamlining operations and boosting efficiency. Digital services now account for a growing share of revenue, with recurring subscriptions and SaaS models reducing reliance on cyclical event demand.

Financial Fortitude

• Free Cash Flow (FCF):
  FCF rose 28.6% in 2024 to £812.1 million, underpinning its £200 million+ share buyback program in 2025 and a 11% dividend hike to 13.6p per share.
  
• Profitability:
  The company expects double-digit growth in adjusted earnings per share (EPS) in 2025, building on a record-breaking 2024.

Risks and Mitigation

While geopolitical tensions and macroeconomic uncertainty linger, Informa’s diversified portfolio—spanning 20+ industries and 150+ countries—acts as a natural hedge. CEO Stephen Carter highlighted the GCC joint venture as a key growth lever, with its high margins and alignment with regional infrastructure spending.

Conclusion: A Case for Sustained Outperformance

Informa’s Q1 results and forward bookings underscore its ability to execute its “One Informa” strategy. With 7.6% revenue growth in Q1, £2.5 billion secured by May, and a pipeline fueled by the GCC expansion and digital tools, the company is well-positioned to exceed its 5%+ annual revenue target.

The £200 million buyback and dividend increases further validate management’s confidence. Even under conservative estimates, the $700 million revenue potential from the Dubai joint venture alone could add ~15% to Informa’s current annual revenue base, implying significant upside.

Investors should note that Informa’s 30%+ operating margins in high-growth regions and its data-driven digital platforms create a moat against competitors. While macro risks remain, the company’s focus on predictable, recurring revenue streams (e.g., subscriptions, exhibitor contracts) reduces cyclicality.

In short, Informa’s Q1 performance is not just a strong start—it’s a clear indicator that the company is executing its long-term vision. With £4.1 billion in annual revenue now within sight, shareholders are likely to see sustained outperformance in 2025 and beyond.