The January Q1 update showed a 6% revenue decline and subscriptions growth is now expected to weaken. Whilst not dire it is weaker than we had assumed and therefore adjust our forecasts lower (FY16 EPS -3.8%, FY17 -8.1% and FY18 -8.5%) resulting in a negative 3year CAGR of 3.6%. Subscriptions are over half of revenues and a weakening of this stable supportive income stream is something we warned would raise concerns. While we don’t want to write off ERM and management we do continue to feel the ....
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Q1 shows weakening subscriptions
- Published:
10 Feb 2016 -
Author:
Johnathan Barrett -
Pages:
5
The January Q1 update showed a 6% revenue decline and subscriptions growth is now expected to weaken. Whilst not dire it is weaker than we had assumed and therefore adjust our forecasts lower (FY16 EPS -3.8%, FY17 -8.1% and FY18 -8.5%) resulting in a negative 3year CAGR of 3.6%. Subscriptions are over half of revenues and a weakening of this stable supportive income stream is something we warned would raise concerns. While we don’t want to write off ERM and management we do continue to feel the ....