Annual report

We pursue progress forindividuals, organisations
and the world.

Contents

About our reporting

Strategic report

About this report

About The Economist Group22
3
4

About us
– Our four businesses– Highlights of the year
– Financial highlights

Performance review
6812

From the chair
From the chief executive
From the editor-in-chief

14
20
20
26
28
34

The editorial year in review
Business review– The Economist– Economist Education– Economist Impact– Economist Intelligence38	Sustainability at The Economist Group
42 – Our colleagues
44 – Climate and environment
47 – UK Streamlined Energy and Carbon Reporting48	Task Force on Climate-related Financial Disclosures (TCFD)
52 Financial review
54 Section 172(1) statement
55 RiskThis annual report aims to give shareholders and other stakeholdersa clear picture of our financial performance, our strategic direction,
the way our business is structured and the way we work. We also
make voluntary disclosures in line with the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD). In ourgovernance report we include the Board’s review of our applicationof the Wates Principles and discuss our relationships withstakeholders by reference to the directors’ duty under s172 of theCompanies Act. We welcome feedback from all stakeholders.

Online summary
We’ve made a summary of this report available online.

Our sustainability reporting
This annual report includes a summary of our approach to, andprogress in, addressing environmental, social and governance(ESG) issues. We also publish a sustainability report, which isavailable on our website and provides greater detail on our pursuitof progress through our content, our colleagues and communities,
and the environment.

Governance report
58
59
64
74
76
78
80

Introduction from the chair
Trustees, Board and leadership teamCorporate governance
The Board and committees
Directors’ report on remuneration
Directors’ reportStatement of directors’ responsibilities

Financial statements
82

I ndependent auditor’s report to the members of
The Economist Newspaper Limited84	Consolidated income statement
85 Consolidated statement of comprehensive income
86 Consolidated balance sheet
87 Consolidated statement of changes in equity
88 Consolidated cashflow statement
90	Notes to the consolidated financial statements
128 Company financial statements and notes
142 Five-year summary

Download the reporteconomistgroup.com

S T R AT E G I C R E P O R T

Enabling insight.
Catalysing change.
Championing
progress.

The Economist Group annual report and accounts 2024

1About us

Delivering actionable insights through fourbusinesses—which all share the “red thread”
of excellence.

With rigorous reporting, in-depth analysis and global
perspective, we explain today’s most important eventsand seek to discern the trends that will shapetomorrow. At the core of everything we do is our
independence, underpinned by our editorial culture
and governance structure.
Read more on page 21

We offer a unique model for clients whowant to lead on the issues that matter most,drawing on an unmatched portfolio of capabilities
including policy research and insights, multimedia
content, global events and advertising.
Read more on page 28

We equip current and future leaders with a fluent
understanding of the shifts shaping their world andthe skills to navigate them, offering courses led byexpert practitioners and written by The Economist’s
correspondents and editors.

Through rich data, deep analysis andglobal insight, we help clients understandtheir operating environment, navigate
risks and opportunities, and move theirorganisations forward.

Read more on page 26

Read more on page 34

2

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

HIGHLIGHTS OF THE YEAR

1.22m

13%

66.4m

3.32m 13630%

	our annual greenhouse-gas
emissions reduction sincebase year 2020

1,643 colleagues in 25 countries support
The Economist Group’s purpose of pursuing
progress. This includes 308 colleaguesin The Economist’s editorial team.

1843 magazine’s Wendell Steavenson
awarded “Journalist of the Year”
at the AOP (Association of Online
Publishers) Awards

The Economist awarded two SOPA (The Society of
Publishers in Asia) awards: “The Prince" for Excellencein Audio Reporting “Xi Jinping: the making of a dictator”
briefing for Excellence in Explanatory Reporting

subscriptions(+3% v 2023)

social-media followers

	growth in digital subscriptions

YouTube subscribers

217m
podcast plays	Economist Impact eventsThe Economist Group annual report and accounts 20243

About us﻿

FINANCIAL HIGHLIGHTS

The digital transformation of our business means we candeliver more insights, to more people, through more channels
than ever—and supports our strategy for sustainable growth.

£367.0m£47.4m£24.8m171.6p160p£31.50revenue (2023: £376.8m)

operating profit (2023: £42.2m)

net cash before lease liabilities (2023: £17.6m)

dividend (2023: 120p)

basic earnings per share (2023: 157.0p)

indicative share value1 (2023: £30.00)

3
2
2

1

1

Revenue by businessGroup revenue breakdown
2024
£m

2023
£m

1 The Economist

217.7

207.5

2 Economist Impact

99.1

117.5

3 Economist Intelligence

50.2

51.7

(includes Economist Education)

1	Refer to page 142 for further information on our alternative performance measures.

4

The Economist Group annual report and accounts 2024

2024
£m

2023
£m

1 Subscriptions

235.3

225.9

2 Advertising, research & other

131.7

150.9

S T R AT E G I C R E P O R T

Performance review
In this section
6

From the chair

8

From the chief executive

12

From the editor-in-chief

14

The editorial year in review

20

Business review

20– The Economist

26– Economist Education

28– Economist Impact

34– Economist Intelligence38

Sustainability at The Economist Group42– Our colleagues

44– Climate and environment

47– UK Streamlined Energy and Carbon Reporting48

Task Force on Climate-related Financial Disclosures (TCFD)

52

Financial review

54

Section 172(1) statement

55

Risk

Making sense ofwhat matters.

The Economist Group annual report and accounts 2024

5

From the chair

An unprecedented
need for analysis.

Paul Deighton
Chair

More citizens will cast their votes in 2024 than in any other year inhistory. The Economist calculates that as many as 76 countries are
due to hold nationwide elections of some form, accounting for 4.2bn
people—more than half the world's population.
As we publish this annual report, we are all digesting the outcome of thelargest single election of all time, with India's epic poll involving nearly one
billion voters. And in America this November we will witness one of the more
momentous ballots of the year, billed by both main contenders, in very different
ways, as a test of democracy itself.
These electoral contests—and sadly several non-contests—take place ina turbulent and uncertain world. Technological upheaval, record temperatures,
tense diplomacy and war all shape the landscape around us, one thatdisinformation often attempts to hide from our view. Both individuals andorganisations need actionable insights that help them navigate that landscape.
Providing insight and analysis has always been at the heart of The Economist's
journalism—and it is the “red thread” that runs through everything we do as
The Economist Group. Across all four of our businesses, we innovate andexperiment to meet the demand for reliable, trustworthy information that helps
inform people's actions—moving with the times, but staying true to our values
as champions of progress. It is an approach that, despite the headwinds affecting
parts of our industry, has delivered another year of profitable, sustainable growth.

A digital-first business, dedicated to the “red thread” of excellence
Our full-year operating profit of £47.4m was 12% higher than last year, reflecting
returns on our ongoing investments in technology, editorial and digital capabilities
and our consistent focus on ensuring that each of our four businesses shares thesame “red thread” of excellence.
6

The Economist Group annual report and accounts 2024

“Across all four of ourbusinesses, we innovateand experiment tomeet the demand forreliable, trustworthy
information that helps
inform people's actions—moving with the times, but
staying true to our values
as champions of progress.”

S T R AT E G I C R E P O R T

Strong revenue growth of 7% at constant currency in The Economist business—in the context of flat
revenue of £367.0m at constant currency for the Group overall—played an important part, offset
by a drop of 16% in revenue from Economist Impact, which is the most exposed of our businesses tothe economic cycle. EIU (an Economist Intelligence business) delivered another strong year, while
Economist Education, still a relatively small business only three years after its launch, nonethelesscontinues to expand.
A detailed review of our businesses can be found in the sections that follow—but this profitableperformance, despite the downturn in traditional advertising revenue in a period when some
corporate clients are hesitant about committing to budgets, is testimony to the strategy put in placeby our CEO, Lara, and her leadership team. We have become a digital-first business that subscribers
trust for the quality of what we produce—and we have become more efficient and innovative in theways that we deliver our products, with a drive for commercial excellence, and a close monitoring ofcosts, embedded across the Group.
At the same time, our balance sheet and operating cashflow remain healthy. Net cash before leaseliabilities increased by £7.2m to £24.8m after capital expenditure of £10.1m and dividend paymentsof £23.8m.

Agile, innovative journalism that continues to cut throughUnder Zanny’s leadership, The Economist’s editorial team has once again shown an extraordinary
willingness to innovate and adapt while staying fiercely dedicated to independent journalism, helping
their many audiences make sense of a complex world in a fast-moving year.
They now do so to a cadence that would be unrecognisable to a previous generation, for whom theweekly newspaper set the working rhythm. The newsroom today creates data analysis, podcasts, films,
webinars and more for a readership in which digital subscribers now significantly outnumber print
subscribers, and who can access news and analysis anywhere, at any time. This year The Economist
has shed light on issues as varied as the impacts of artificial intelligence, the power and vulnerability of
China, the strategic dilemmas facing Ukraine, and the risks and implications of war in the Middle East.
Boosted by new products such as Economist Podcasts+, subscriptions have reached record levels.
It is clear that while the channels have evolved, the appetite for evidence-based, trusted journalism is
as strong as ever.

Progress made possible by colleagues and stakeholders
Our continued progress is made possible by the commitment to innovation and quality sharedby Lara and Zanny, and the dedication of our colleagues, who deliver time and again for our
subscribers and clients. It is a pleasure to be part of a working culture in which excellence andcollaboration are the norm—and where colleagues are so active on issues such as climate change,and diversity and inclusion, as demonstrated by the growing number of colleague-led affinity groups.
This year we have again published a separate sustainability report to sit alongside this annual reportand provide stakeholders with greater insights into the progress we've made on environmental, socialand governance (ESG) issues—and the challenges we still face. While there is clearly more to do, theBoard is pleased to see that an increasingly digital business is one with a shrinking carbon footprint:
we have met, ahead of schedule, our “25 by 25" ambition to reduce our greenhouse-gas emissions byat least 25% by 2025 across our full value chain, and we are now fully focused on our science-based
2030 target.
As always, of course, we remain very grateful to our shareholders, whose support for our strategy has
been key to our progress. As ever, in evaluating dividends, we considered a number of factors, including
the short- and long-term investment requirements of the business, the outlook for the Group, theinterests of shareholders and other stakeholders and the need to have an appropriate contingency
given the market uncertainty, including from the development of AI. I am pleased to confirm that theBoard has recommended a final dividend for the year of 120p, taking the full-year dividend to 160p.

Paul Deighton Chair
The Economist Group annual report and accounts 2024

7

From the chief executive

Navigating volatility.
Providing insight.
Championing progress.

Lara Boro
Chief executive

When does volatility stop being the “new normal”—and become
just “normal”?
A year that saw war in the Middle East, grinding conflict in Europe andAfrica, stubborn interest rates that defied all forecasts, and the hottest
temperatures recorded by land or sea has given way to one in which
all these challenges form the backdrop to humanity's largest-everexperiment in democracy.
The Economist Group's purpose is to champion progress by helping people
understand and navigate this volatility. All four of our businesses exist to provide
rigorous analysis, insight and expertise—trusted information services that help
individuals and organisations think, decide and act.
Our performance this year shows that demand for these actionable insights has neverbeen stronger. It reinforces our commitment to a strategy designed to make sure we
can extend our 180-year record of producing excellent, values-based journalism andinformation services far into the future, by maintaining sustainable growth.

Transformed: a digital business delivering outstanding online content
While parts of our business have felt the bite of economic headwinds this year, theoverall picture is one of growth in subscriptions and profit, reflecting our investment
in editorial and digital capabilities over the past four years.
The Group delivered operating profit of £47.4m, up 12% on last year. This wasachieved while revenue declined by 3% at actual exchange rates to £367.0m,
and was flat at constant currency. This reflects on the one hand the impact ofrecessionary pressures on some of our client-facing businesses, and on the other,
our continued focus on carefully managing operating costs and embedding
commercial excellence across the Group.
8

The Economist Group annual report and accounts 2024

“We can now say withconfidence that we area digital business, focusedon innovating our digitalproducts and processes
so we can bring audiencesmore analysis and insights,
through more channels,
more often.”S T R AT E G I C R E P O R T

Outstanding journalism and content produced by colleagues throughout the Group are thedriving forces behind our performance. But our results also reflect the transformation of
our business. We can now say with confidence that we are a digital business, focused on
innovating our digital products and processes so we can bring audiences more analysis
and insights, through more channels, more often.
More than 65% of subscriptions to The Economist are now digital-only, compared with 35%
four years ago—and this year, 86% of new subscribers were digital. These subscribers are
consuming an increasing variety of digital products—and those are driving our growth.
This year we launched Economist Podcasts+, a new subscription service offering paid
access to our weekly podcasts on global affairs, business, China, America, technology
and more—and this has contributed to our growth, adding over thirty thousand subscribers
in the first six months since launch.

Strong subscriber growth, offset by recessionary headwinds
The business reviews on pages 20-37 describe how each business performed thisyear—but I would like to share some highlights here.
I have already mentioned some of the digital headlines for The Economist business—andthey have translated to a strong performance in a year when many media businesses saw
significant challenges. Following a refreshed effort to acquire new subscribers, newEconomist subscriptions were up compared with last year, with the overall subscriberbase at an all-time high of 1.22 million. Revenue was 7% ahead of last year. Espresso andPodcasts+ subscriptions saw strong growth, while corporate and enterprise subscriptions
reached new highs. We still need to stay focused on innovation, recruitment and retention
to keep these trends going—but it is a performance that underlines the enduring demandfor high-quality, values-based journalism.
Economist Impact, with its client-facing Partnerships and Events functions, is the most
exposed of our businesses to the economic cycle, and it felt this year's headwinds most
keenly, with revenue declining by 16% (pages 29 and 53). Economist Impact Events revenue
was stable after a very strong prior year. While headline events such as EuroFinanceInternational continue to go from strength to strength, with this year's iteration attracting
over 2,000 attendees, revenue from smaller custom events has slowed as clients have felt
the recessionary pinch. Economist Impact Partnerships saw revenues fall substantially,reflecting similar constraints on clients' marketing budgets. We remain confident in the
Economist Impact offer, and in the strength of excellent partnerships such as The Health
Inclusivity Index and Trade in Transition, recognised this year at the Lovie awards andDrum B2B awards respectively. But we are also pragmatic about current trading conditions
and realistic about the long-term trends in advertising; we will continue to fine-tune our
Economist Impact Partnerships offer to focus it even more sharply on differentiatedservices which help our partners position their brands as key influencers in the areasof sustainability and healthcare, and shape new globalisation trends.
Economist Intelligence, which brings together EIU, Corporate Network and Clearstate,delivered a 1% increase in revenue at constant currency. Our investment in products andtechnology helped drive another successful year for EIU, which saw subscriptions andrevenues grow. This was partially offset by a reduction in revenue at Clearstate, as it
focused on its data products and less on consulting, after three years of significant
revenue growth.
EIU continues to add digital tools and resources to its offer, and has maintained its highly
respected position in the industry—it was named the best overall forecaster in the annual
Focus Economics awards 2023.
Our Economist Education business continues to grow and innovate—it added a sixth
course to its portfolio this year, developed in-person courses for enterprise clients, andcontinued to expand its global reach, providing executive education to students from morethan 100 countries.

The Economist Group annual report and accounts 2024

9

From the chief executive﻿

Investing in colleagues and innovation—and reducing our carbon footprint
Our successful transformation into a digital business is the end of one key transformation
process, but also the beginning of another—one of continuous improvement and innovation.
We're investing in products and tools that help us serve existing audiences better, and win
new ones. We're exploring the opportunities presented by generative AI to improve how
we operate and the services we provide. We're diversifying our editorial offer, and readying
a new digital customer-management system for our corporate clients for launch thisautumn. And we're working hard to develop new ways to deliver business-to-businessservices and attract corporate and enterprise subscriptions.
Our digital business is still a people business, of course. All our offerings rely on the
dedication and energy of our colleagues, and we continue to invest in making The Economist
Group an attractive, rewarding and inclusive place to work. Our work on career-development
frameworks has continued this year, alongside the development and training of leaders,
including through our People Managers Forums, launched in January 2024. Our gender
pay gap in the UK has shrunk by 4.3%—though while a 16.3% gap is our lowest ever,
we clearly still have more to do.
We've also kept up momentum on our environmental ambitions. A clear benefit of being
digital is that smaller print quantities significantly reduce the greenhouse-gas emissions
associated with our business—a finding confirmed by our carbon-footprint analysis thisyear, which shows a reduction of 30% since our baseline year of 2020, beating our near-termtarget of a 25% reduction by 2025 one year early. We have set a road map for further
reduction to 43% by 2030, on our pathway to net zero by 2045. This and many other
ESG-related issues are discussed in detail in our separate sustainability report.
There have been several changes to our leadership team over the year. We welcomed chief
people officer Kristin Anderson and chief data officer Daragh Kelly in 2023. Bob Cohn andRamsey Hashem resigned as presidents of The Economist and Economist Intelligence
respectively—we wish them well—and their roles were admirably performed on an interim
basis by Freddie Cornes and Helen Hutchinson, pending the appointments as presidents
and managing directors of Luke Bradley-Jones to The Economist this summer andLeon Saunders Calvert to Economist Intelligence in April 2024.

Future-ready—whatever shape it takes
Volatile times make forecasting difficult. By this time next year, unless the truly
unforeseeable arises, new governments (and several old ones) will have been electedin dozens of countries around the world. AI will have taken another leap forward, andperhaps—let us be optimistic—wise heads and collective action will have prevailed in theconflicts currently tearing regions apart, and in the long-term action against climate change.
All these developments will fuel even more demand for insight—into what is happening now,and what will happen in the future. By innovating and diversifying to meet that demand whilestaying true to our values, we can grow our business further—and fulfil our purpose ofchampioning progress.

Lara Boro Chief executive

10

The Economist Group annual report and accounts 2024

“More than 65%
of subscriptions to
The Economist are
now digital-only—and
this year, 86% of new
subscribers were digital.”

S T R AT E G I C R E P O R T

Charting our progress
Our digital-first strategy is delivering profitability despite
a volatile operating environment.
Revenue*

Operating profit*
2024 £367.0m

2024 £47.4m

2023 £376.8m

2023 £42.2m

2022 £346.3m

2022 £46.4m

2021 £310.3m

2021 £41.8m

2020 £320.3m
0

100

200

2020 £32.9m

300

400

Subscription volumes

0

10

20

30

40

Indicative share price**
2024 1.220m

2024 £31.50

2023 1.182m

2023 £30.00

2022 1.185m

2022 £30.00

2021 1.182m

2021 £25.00

2020 1.088m
0

0.25

0.50

0.75

1.00

2020 £23.00
1.25

0

5

10

15

20

25

2024 £235.3m

2023 59%2022 £211.7m

2022 52%2021 £209.5m

2021 44%2020 £193.9m
100

352024 65%2023 £225.9m

50

30

The Economist digital-only subscribers

Subscription revenue

0

50

150

200

2020 35%
250

0

10

20

30

40

50

60

70

*The 2020 and 2021 revenue and operating-profit metrics are presented on a continuing basis, and in the case of operating profit, on an adjusted basis.
**Refer to page 142 for further information on our alternative performance measures.

The Economist Group annual report and accounts 2024

11

From the editor-in-chief

Clarity in a
cacophonous world.

Zanny Minton Beddoes
Editor-in-chief

Depending on where you look, this year’s news agenda has been
alarming, thrilling or simply confusing. Most geopolitical news fellsquarely into the first category. Brutal conflicts in Ukraine andGaza dominated the headlines. They played out against a backdropof strategic rivalry between China and America, deepening links
between aggressive authoritarians, especially Iran and Russia, andthe rising clout of non-aligned powers such as India and Saudi Arabia.
The post-war order led by America is morphing into something more
fragmented, transactional and dangerous.
Economic news was in the confusing category. Like geopolitics, the global
economy is changing fast. The old “globalised” world of free trade and multilateralrules is being replaced by a new orthodoxy that favours industrial policy and theweaponisation of economic tools. Sanctions, subsidies and tariffs are in vogue;
openness is out. The macroeconomy is also transforming in puzzling ways: inflation
at first proved responsive to higher interest rates, but now seems stubborn. In mostbig economies, the fiscal outlook is dire. Yet financial markets have been on a tear.
That could be thanks to the third—thrilling—development of the past year:
the advances in artificial intelligence. Generative AIs are becoming rapidly
more powerful and their world-changing potential more evident. No industry
will remain untouched.
Our job is to help readers make sense of these shocks: to distinguish whatmatters from the noise, to draw connections between disparate developments
and thus to offer an authoritative perspective on where the world is heading.
The Economist’s journalism is as much about insight as information. In a digitalworld these insights need to be delivered in whatever form subscribers choose.
And all this must be done by an editorial staff of about 300, far smaller than thatof our competitors.
12

The Economist Group annual report and accounts 2024

“It is increasingly lonely to
be a champion of a liberal,
open world order, but evermore important.”

S T R AT E G I C R E P O R T

Three characteristics set The Economist apart and allow us to punch above our weight.
The first is expertise. Many of our journalists are experts in their field, spurring a virtuous
circle, where expertise leads to exceptional access, whether to policymakers or businessleaders, which in turn improves our insights. Second is a focus on curation. Because wecannot cover everything, we think hard about what is important and where scarce talent
should be deployed. We try to maximise the impact of our work by complementing ourwritten journalism with other formats, be they podcasts, data-led projects or by inviting
influential outside voices to write in our pages.
Third is the “hive mind”. We spend a great deal of time in discussion and debate, a processthat brings together the perspectives of different disciplines and subjects our conclusions
to rigorous peer review. The priors of our hive mind, in turn, are shaped by the classicallyliberal values The Economist was founded to champion: the faith in free markets andopen societies. It is increasingly lonely to stand for a liberal, open world order, but evermore important.
These characteristics shape our journalism. In Ukraine our military expertise and unparalleledaccess to policymakers have made The Economist a global must-read which, in turn, has on
occasion itself influenced events. In a By Invitation piece for us, Valery Zaluzhny, Ukraine’s top
general, declared the war to be at a “stalemate”, an assertion that ultimately led to his dismissal.
We are lucky to have similar world-class expertise in our Middle East team. Josie Delap, ourMiddle East editor, oversees clear-eyed journalism from Anshel Pfeffer in Jerusalem, Gregg
Carlstrom in Dubai, Nicholas Pelham in London and Anton La Guardia in Washington, each ofwhom has written acclaimed books about the region. In such a polarising conflict, the hive
mind has proved invaluable. Internal debates have been pointed, not everyone agreeing with
our editorial line. But our coverage has surely been sharpened by the strength of the discussion.
An enduring fealty to free markets shapes our economic coverage. Our economists stoodfirm against the vogue for industrial policy: a powerful special report by Callum Williams
called “Homeland Economics” laid out why this shift would prove both costly and ineffective.
But we took the new orthodoxy seriously, analysing the strengths and weaknesses ofBidenomics in a number of cover stories and giving space in By Invitation to trade sceptics
such as Robert Lighthizer, intellectual architect of Donald Trump’s tariffs.
The final element of successful curation is to strike the right balance between the alarming
and the thrilling. We did not shrink from the former: around half our covers in the past year
were sober assessments of economic and political risks. We were early to highlight the
meticulous preparations Mr Trump’s team was making for a second term and early to fretabout the electoral risks of Joe Biden’s age. But we made room for the positive, running
optimistic cover stories on subjects from fertility technology to breakthroughs in longevity.
We pushed back against unjustifiably gloomy conventional wisdom, showing how muchthat is written about rising inequality, the dire situation of blue-collar workers and thedismal economic prospects for young people is wrong. Our AI coverage was upbeat but
not breathless. With the help of a team that includes several computer scientists,
we explained authoritatively both how the technology works and how it is evolving.
We have also been busy exploring how AI will change The Economist. We now havea senior editor for AI initiatives and are busy experimenting with everything from translation
to summaries. Rest assured that what you read, see and hear is journalism produced bya human (unless we have clearly stated otherwise). But we have ambitious plans to harness
the technology. Our experts and the hive mind are core to this effort. It is early days, but I am
confident that what makes us successful now will be rewarded in the era of AI. More on thatto come next year.

Zanny Minton Beddoes Editor-in-chief

The Economist Group annual report and accounts 2024

13

The editorial year in review

For 180 years we have spoken to ourreaders with one voice, a practicethat reflects our rigorous debate,rich collaboration and liberal values.
That voice remains as strong as ever.

14

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

The Economist offers a simple proposition, increasingly
rare in modern media: truly global, fiercely independentjournalism. In a fracturing world, we make sense of whatmatters, with expert reporting and analysis delivered
across print, our app, podcasts and more. Big, rapidchange can generate confusion. We specialise in clarity.
This is evident, as ever, in our weekly print edition, from ourleader pages to our in-depth briefing and evocative obituary.
But, 180 years after our founding, two-thirds of our subscribers
consume our journalism only digitally. They do so primarily throughour app, which in addition to offering the weekly edition alsopresents a daily selection of journalism that reveals our expertise
across subjects and geographies. Stories from the newspaper are
published online throughout the week, so our audience can readabout big news as it happens, rather than wait for the weekend.
We also offer an expanding set of features that are available
only digitally.
Rather than dilute The Economist’s core proposition, our digitalfeatures have enriched it for a modern audience. Analysis has
always made us distinct. Our department of expert data journalists
has reinvigorated The Economist’s long-standing reputation for
quantitative excellence with the tools of modern data science(see feature on page 18). Our broader team uses digital-native
capabilities to deepen our analysis, too. For instance, twointeractives let our audience “build” voters with specific traits
in America and Britain, to predict how they will cast their ballots.
A separate multimedia project deciphers the sweet-talking
techniques that Narendra Modi has deployed in his monthly
radio show to cement power as India’s prime minister.
Other features in the app have enhanced our ability to simplify
the complex. In 2023 we introduced three digital A-Z guides,for US politics, international affairs and military terms. We usedmaps to provide short histories of India, Russia and Ukraine, and
the Arab-Israeli conflict. Our new daily summary of American
politics—the US in brief—has become the antidote to America’s
media frenzy, a concise update on the developments that matter.

The Economist offers a simple
proposition, increasingly rare
in modern media: truly global,
fiercely independent journalism.

20+
newsletters

Continued innovation within the app reflects a culture ofexperimentation within Editorial. We are keen to find new ways
to serve our audience and widen it. These efforts are bearing fruit.
Not long ago, podcasts were peripheral to our main offering.
They are now an award-winning collection and, as of October,the basis for Economist Podcasts+, the first standalone podcast
subscription from a major news organisation. The Intelligence, ourdaily news show, remains free to all. Listening to all our other shows,from Money Talks, on business and finance, to Next Year in Moscow,on Vladimir Putin’s Russia, requires a subscription to Economist
Podcasts+ or to The Economist itself.
The Economist Group annual report and accounts 2024

15

The editorial year in review﻿To coincide with the launch, we introduced a new limited series anda new weekly show, exclusively for subscribers. In the Boss Class
series, Andrew Palmer, our Bartleby columnist, applies his wit andclear analysis to management, a discipline often starved of both.
Jamie Dimon, of JPMorgan Chase, and the late Daniel Kahneman,a Nobel-prizewinning psychologist, are among those who help
untangle the knottiest questions facing business, from the futureof offices to the change unleashed by generative AI.
Our other new podcast is something entirely different: The WeekendIntelligence, which explores a subject in depth each Saturday, often
through a personal lens. Our two most popular episodes reveal theformat’s breadth. In one, Catherine Brahic and Sacha Nauta, twolongtime correspondents, explained the hope and heartbreak of
their experience with in-vitro fertilisation. In the other, Zanny Minton
Beddoes, our editor-in-chief, and Arkady Ostrovsky, our Russia
and eastern Europe editor, returned to Kyiv to explore how war
with Russia has transformed Ukraine, and ask how long thatcountry can live on a knife’s edge.
We think such shows make our podcasts distinct. Our audience
seems to agree. At a time when the vast majority of news podcasts
remain free, we have retained more than 80% of our total listener
numbers since introducing the paywall. Other shows and limited
series are in the works, underpinned by the storytelling and analysis
for which our podcasts are now known.

217m
podcast plays in 2024

A clear lesson from podcasts isthat we can produce excellent
journalism in a new form, so ouraudience can explore The Economist
in the way that suits them best.
A clear lesson from podcasts is that we can produce excellent
journalism in a new form, so our audience can explore The Economist
in the way that suits them best. Other initiatives reflect similar
thinking. In recent years our social team has built a following of morethan 60m, many lured by brief, clever videos—even a 90-second
TikTok can, it turns out, reflect our global perspective, authority andwry humour. In 2023 our social videos had more than 150m views.
To further engage that audience, in April we introduced a video
carousel within our app. Short explanatory videos, from theeconomics of thinness to the charts that explain Joe Biden’spresidency, present our journalism in the form that a growing
number of people—and in particular younger audiences—want
to consume it.
Our live digital events offer an in-depth complement to theseshort videos, with subscribers able to watch briefings on Ukraine,
America's elections and more, and pose questions to our editors
in real time. In January, as business leaders and policymakers
continued to ponder generative AI, Zanny spoke with two men
shaping its future. The live webcast of her discussion withSam Altman, of OpenAI, and Satya Nadella, of Microsoft,was our most popular of the year.

16

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

For those who prefer to read their news within their email, we have
expanded our collection of newsletters, delivering our reporting andanalysis straight to readers’ inboxes. Seventeen newsletters are now
available exclusively to subscribers. They include links to daily andweekly coverage, but are now pieces of journalism unto themselves.
James Bennet, our Lexington columnist, provides an expert viewof American politics in the weekly Checks and Balance newsletter.
Shashank Joshi, our defence editor, writes The War Room, a weekly
look at military developments and their implications for geopolitics,
business and more.
We also introduced a suite of regional newsletters on Africa,
Europe, India, Latin America and the Middle East, to complement
our existing newsletters on America, Britain and China. Subsets
of readers value The Economist’s journalism on places that other
outlets cover sparingly. Our new regional newsletters make iteasy for them to explore our expansive coverage.
For readers who want a complement to our analytical journalism,
1843 magazine has come into its own. There are now two main
formats: short, transporting pieces of reportage, for instance on
the early days of the war in Israel and Gaza, and long, rich featuresthat are not just well written but must-reads. Henry Tricks, ourSchumpeter columnist, wrote a definitive profile of Larry Fink,
the world’s most powerful asset manager. Nick Pelham, our Middle
East correspondent, wrote about Morocco’s missing king and theworld’s biggest bank heist, pieces which won him recognition at thePress Awards in Britain.

19m

Across these formats, a slow shift is under way. The Economist’s
weekly edition, and most of its written journalism online, remain
without bylines. However, podcasts, newsletters, videos anddigital events are steadily introducing our journalists to ouraudience. For 180 years we have spoken to our readers with one
voice, a practice that reflects our rigorous debate, rich collaborationand liberal values. That voice remains as strong as ever. However,letting our audience hear directly from our journalists, we think,complements our core offering and presents something more:a team of diligent, expert staff working to produce the best
journalism they can. In 2024, amid political polarisation and rising
mistrust, that is for the good.

	referrals from newsletters
to our website

The Economist Group annual report and accounts 2024

17

The editorial year in review﻿

F E AT U R E S T O R Y

Read more

Letting data tell thestory—with speed
as well as rigour
Numbers have featured prominently within
The Economist since its founding in 1843: the firstissue included a formidable table of Britain’s tariffs
and import volumes for coffee. Today the vast majorityof stories use statistics to support their claims, with anaverage of 50 charts published each week.
But there is a difference between charts that support stories
and the data-led journalism produced by The Economist’s data
department, which turns ten years old in 2024. Our specialist data
journalists—with backgrounds in advanced social, natural andcomputer science—combine expert rigour with journalistic speed,
reaching new conclusions months or years before the firstpeer-reviewed papers on a topic appear.
Some of their most striking recent work has been on conflicts,
from Ukraine to Sudan. To provide a comprehensive data-driven
complement to our defence team’s in-depth military reporting,the data team turned its sights to the skies.

18

The Economist Group annual report and accounts 2024

Sondre Solstad built a machine-learning model that analyses
the location of abnormally high temperatures on Earth’s surface
recorded by FIRMS—a satellite-based system run by NASA
designed to detect forest fires—and distinguishes conflagrations
caused by fighting from those with natural or peaceful causes.
We displayed the model’s findings in a live tracker, which showswhere and when explosions have occurred on every day since thewar in Ukraine began, and updates every 12 hours.
Another member of the data team, Ainslie Johnstone, measured
the damage Russia has done to Ukrainian cities. Using images
from the European Space Agency’s Sentinel satellites, she built
an algorithm that compares photographs of the same locations
at different times, pixel by pixel, to detect statistically significant
changes. She combined the results with databases of building
footprints to produce maps and an overall estimate of the numberof damaged structures in all front-line Ukrainian cities.
Such models take time to develop, but once in operation they canbe reapplied easily to other parts of the world. Our data teamsubsequently used its fighting-detection system to monitor the civil
war in Sudan, and its damage-assessment tool to measure the impactof the earthquake that devastated Turkey and Syria in 2023. When
war broke out between Israel and Hamas, we were able to monitor
fire activity along Israel’s borders with Lebanon and Syria and publish
the first public estimates of the share of buildings in Gaza damagedby air strikes. Citing the “material impact” of Sondre’s work on thetargeting of humanitarian efforts in Ukraine and Sudan, Britain’s
Press Awards in April named him their Data Journalist of the Yearfor devising “a 21st-century way to report on a 21st-century conflict”.

With countries accounting for half the world’s population holding
elections in 2024, the team’s focus is on data journalism related topolitics. Our tool kit includes poll trackers, election-forecast models
and other ballot-related quantitative projects. We have launched“build-a-voter” models for Britain and America. These let users input
demographic profiles (based on factors such as age, race, genderand location) and see which party or candidate such a voter would
be likely to support. We have launched our first formal forecast
model for the British election and will release updated models forpresidential and Congressional races in the United States in the
coming months. (In 2022 The Economist’s forecast of the American
midterm elections correctly anticipated that Republican candidates
would fall well short of widespread expectations for a “red wave”.)
We have also published polling averages for Indonesia and Taiwan
and plan to produce them for the European Parliament, Mexico andSouth Africa.
The data team’s prizewinning work is a highlight of our journalism.
It has also bolstered The Economist’s broader digital strategy.
Unlike single articles, its models and trackers offer readers new
insights every day, bringing them back to see the latest results
time and again. All charts, maps and interactives are designed
for mobile phones—which now account for the majority of ouraudience—before being adapted for readers on tablets, desktops
or in print. Whatever the format, the goal is the same: to create theworld’s best data-led journalism.

S T R AT E G I C R E P O R T

Ainslie and Sondre also collaborated on an ambitious study that has
reverberated through American media organisations. In December
2023 we published an essay by James Bennet, our Lexington
columnist, that described his ousting as the opinion-page editorof the New York Times and the stifling of debate within the paper’s
left-leaning staff. The data team set out to determine whether
the trend that James perceived among his colleagues could bemeasured in the Times’s output, and whether similar changes had
occurred at other media organisations. Using archives of 242,000
articles, 397,000 television segments and every speech madeby a member of Congress since 2009, Ainslie and Sondre firstcompiled a dictionary of phrases that were used almost exclusively
by representatives of a particular political party—such as “unborn
child” for Republicans or “reproductive care” for Democrats.
They then counted how often such terms appeared in media
coverage, broken down by the publication or channel, year andtopic. They found that the language of mainstream American media
outlets did indeed sound more Democratic than Republican, andthat this gap had grown over time. Applying the same method to
The Economist’s coverage suggests it has hewed close to thepolitical centre (see chart).

Whatever the format,
the goal is the same:
to create the world’s
best data-led
journalism.

The centre cannot holdSelected news websites, ideologyof language on all topics
Breitbart

Ideological lean
↑ Right

Trend

The Economist↓ Left

WaPo

NYT

Vox
Buzzfeed
2017

18

19

20

Sources: All The News; Library of Congress;
Internet Archive; NELA-GT; The Economist

21

22
Read more

The Economist Group annual report and accounts 2024

19

Business review The Economist

The Economist makes sense of fastmoving global stories, no matter how
volatile the times—and its insights andanalysis have never been more needed.
This year our digital-first approach hasdelivered clear-eyed journalism to more
subscribers, through more channels,
than ever before.

20

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

More insights, more channels—and more subscribers.
“Nearly two-thirds of subscribers now takedigital subscriptions, up from 35% in 2020.
Even more strikingly, in the past year, 86%of new subscriptions were digital. And bestof all, subscriptions overall are up 3%—toa record level.”
Freddie Cornes
Interim president and managing director, The Economist

What we offer

The Economist at a glance

The Economist, via app, web and print

1.22m

Espresso, our global briefing app
Podcasts: two daily and five weekly shows, plus special limited series
Economist Podcasts+: our new subscription service
Newsletters: three daily, 17 weekly+7%

revenue at constant currency

Economist Films
Regular webinars with our journalists, and in-person subscriber events
Corporate and enterprise subscriptions services

subscribers

86%of new subscribers digital-only

66.4m

social-media followers

13%	 growth in digital subscribers

The Economist Group annual report and accounts 2024

21

Business review The Economist

We’ve changed.
We're still a proud newspaper, with proud traditions—but
we do things differently now. High-quality digital journalism
is what is driving our growth, and our growth is driving
more excellent digital journalism—which is engaging ouraudiences more deeply and more often than ever before.
Our audiences are changing too. Our new subscribers are younger
and more diverse than they used to be—and there are a lot moreof them.

Values-based, digital journalism that's attracting record
subscriber numbers
We've been transforming into a digital-first business for several
years, driven by a strategy of investment in technology, products
and people that saw digital innovation placed front and centre ofour business plans. This year we've passed the tipping point: 65%of subscribers now take digital subscriptions, up from 35% in 2020.
Even more striking, in the past year, 86% of new subscriptions weredigital. And best of all, subscriptions overall are up 3%—to a record
level of 1.22 million at year-end.
Subscribers will have experienced our transformation through ourjournalism, which from a modest digital seed has quickened into
a whole ecosystem surrounding the newspaper: the website and
The Economist app, newsletters, podcasts, webinars, films andEspresso, our global news briefing app.

But the pace has been equally bracing behind the scenes.
Product development, customer management, website and app
improvements—in short, applying digital innovation to the user
experience, so that more people want to subscribe, and more
people want to stay.

Innovative products, agile marketing—and a younger
audience
The rise in subscriptions has helped drive revenue growth, up 7%
year on year at constant currency. It isn't a straightforward readacross—digital subscriptions are typically priced lower than our
print-digital (bundle) subscriptions, so revenues per subscriber are
lower, too. Then again, digital costs are usually lower than print
costs—especially at the moment, when print-cost inflation is high.
In revenue terms, the growth in digital subscriptions has morethan offset the decline in print.

Our digital transformation
We're now a digital-first business, with digital-only subscriptions driving our growth—and excellent
journalism attracting record subscriber numbers.
1,200

1,046

1,049

1,086

1,116

1,172

1,184

1,182

1,185

1,182

1,220
1000

1,088

800

Digital subscribers

619

Accelerated digital investment

178
2014

22

215
2015

254
2016

600

700

516
293

2017

333

2018

The Economist Group annual report and accounts 2024

365

385

2019

2020

400

200

2021

2022

2023

2024

0

Thousands

791

Subscription volumes

The launch of our paid-for Economist Podcasts+ subscription
service in October 2023 (see case study on page 25) has given us
a superb boost. So has our updated Espresso global briefing app,which saw subscriptions grow by half over the year. We've alsodelivered another year of growth in corporate and enterprisesubscriptions—where organisations take out group subscriptions
for their employees or students—which we continue to see asa significant growth opportunity. At the same time, we've been
more tactical and sophisticated in our use of discounts andimproved our digital-only monthly free-trial offer to help win new
subscribers. Subscriber growth has come with a more diverse
demographic spread, too—when we sampled our subscriber basethis year, we found our digital-only product subscribers averaged
between 10 and 20 years younger than digital-print bundle
subscribers, and were significantly more likely to be women.

A subscription that people value—and use
Engaging our readers and listeners has played a vital role: we wantsubscribers to value their subscriptions, and the more they findto delight and inform them, the more they are likely to stay.
Engagement is helped above all by the newsroom, which posts
content to the web, app and social feeds ahead of print deadlines,
digital-only articles, and daily and through-the-day updates.
We now also have three daily and 17 weekly newsletters available
to subscribers, and we've built on our subscriber-only webinar
programme, where journalists from The Economist discuss news andanalysis, and added in-person subscriber events. The Economist app

S T R AT E G I C R E P O R T

What has driven the increase in overall subscriptions? The shortanswer is outstanding journalism—but we have also taken aneven more powerful lens to our approach to attracting subscribers,setting out a refreshed value proposition and getting more fromthe excellent products in our portfolio, and from new ones.

86%	of new subscribers
digital-onlyis one of our most important engagement tools, and we continue toimprove it—customer satisfaction with the iOS app is now at 4.9 outof 5, according to the Apple store. Over the past three years, theshare of our audience we consider “engaged” has grown by 18%.
While new acquisitions rose significantly last year, we'll keep
working on engagement—not least because it plays an importantrole in retaining our subscribers as a result of our monthly offers.

More journalism, more renewals, lower emissions
The print-digital bundle is still an important product, and we know
many of our most loyal customers still value the print edition highly.
We do, too, and we continue to focus on making the printed
newspaper excellent, with a strong presence on newsstands—thisyear, average weekly newsstand sales were 43,000. The trend awayfrom print, however, does mean we can publish more outstanding
journalism for a lower environmental impact, as you can see in oursustainability report and on page 41.
There are other areas where the cost/benefit trade-off favours
a digital-first business, too. Digital customers are, broadly speaking,less costly to acquire and more likely to renew—and they are lessreliant on the postal service.
So next year we'll keep improving and innovating our digital offer,so we can reach more people, with more content, through morechannels. We'll focus on driving growth in corporate and enterprisesubscriptions, and continue exploring what AI can do to improvecustomer service and introduce new offerings. And we'll doeverything we can to keep subscribers engaged—so they cancontinue enjoying the independent, values-driven journalism thathas championed progress for the past 180 years.

4.9(out of 5)
customer rating for
The Economist app in
the Apple store

The Economist Group annual report and accounts 2024

23

Business review The Economist

C A S E S T U DY

On a screen near you—
The Economist’s video platform

Our audiences value their subscriptions highly—andto make sure that stays the case, we constantly look
to innovate and expand the ways in which subscribers
can engage with and enjoy our content.
February 2024 saw the full launch of a new channel
for that engagement—our new, in-house video
platform giving viewers access to our popular
subscriber events series, where The Economist
journalists have in-depth discussions and provide
analysis of key issues in, and behind, the news.
It meant we could improve subscribers' experienceby hosting live events directly on our platform,
streamlining the registration process and giving us
the opportunity to better use the events to retainand engage subscribers. And it drew on skills andexpertise from across our business—tapping into theexperience of Economist Impact Events as well as
the innovation and ingenuity of the engineers behind
our video technologies, app and website.
Events were a first step in fully integrating video
content—from April 2024, our core The Economist
app and website hosted a “vertical video carousel”
containing short, explanatory videos that arereaching and engaging new audiences, in new ways.

24

The Economist Group annual report and accounts 2024

“With our new video platform, we've transformed
how subscriber events are experienced, moving fromdependency on third-party tools to a fully integrated,
The Economist-centric experience. This not only
simplifies access to our events for our subscribers,
but opens a wide range of possibilities to developinteractivity and engagement in our eventsuser experience."
Maxime Faure
VP of web

S T R AT E G I C R E P O R T

C A S E S T U DY

A new playbook: Economist Podcasts+

For 180 years The Economist has been producing the newspaperfor discerning readers across the globe. For 25 years The Economist
has been packaging its journalism for paying digital audiences.
With the debut of Economist Podcasts+ in October 2023,
The Economist extended the same paid-for content model to
podcast fans and redefined the way subscribers engage with
its audio journalism.
Economist Podcasts+ builds on an exploration of audio that
we began in 2006. From the daily sweep of The Intelligence toour engaging weekly shows Money Talks, Checks and Balance,
Babbage and Drum Tower, listeners have built a habit of turning
to The Economist for in-depth conversations on themes shaping
the world—an engagement that has deepened through limited
series such as “The Prince”, on President Xi Jinping, and“Next Year in Moscow”, on Vladimir Putin’s Russia. By 2023,
with a stable of award-winning shows and 5m monthly uniquelistens, we were in a position to take the bold step to launcha standalone subscription.

Making excellent journalism more accessible—and at
a fair priceWith Economist Podcasts+, we aim both to deepen our offer
for existing subscribers and avoid repeating one of the media
industry’s biggest mistakes. For years most brands, with the
exception of The Economist and the Wall Street Journal,
gave away their digital journalism while charging for print.
The reckoning came over the past decade or so, as publishers
everywhere scrambled to put the digital genie back in thebottle. We believe our podcasts should follow the model weuse with print and digital text: we produce excellent journalism,
make it available globally and charge a fair price.
So teams across the Group—editorial and marketing, productand data, programme management and communications—set towork to offer a standalone subscription for our audience, so they
can support our journalism in the form they want to consume it.
To coincide with the launch of Economist Podcasts+, we launched
two more limited series: Boss Class, on management; andThe Weekend Intelligence, a Saturday show that explores one
story in detail, from the mystery of a famous plane crash to the
future of Ukraine. The coming year will see the creation ofseveral more.

“Our podcasts enable us to take the qualities that make
The Economist special and bring them to a wider audience.
When we first considered paywalling content for Economist
Podcasts+, we were concerned about diminishing the impact of
our audio journalism. But listeners were receptive from the start.
They know that good journalism costs money to produce andthat subscriptions are the most sustainable way of funding it.
I’m very proud that the vast majority of Economist Podcasts+
subscribers are new to The Economist and have never paid foran audio subscription before.”John Shields
Director of podcasts

The Economist Group annual report and accounts 2024

25

Business review Economist Education

Economist Education is building
a strong presence in executive
education by creating exceptional
learning experiences for individuals
and enterprise clients, drawingon The Economist Group’s richeditorial capabilities, brand andmarket reach.

26

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

Reaching a global audience with skills
that equip professionals for success.
Our portfolio of courses teaches the skills that executives
and companies need to thrive in the algorithmic age.
We group our courses around the themes of communication,
thinking and insights—aiming to help professionals develop
a rounded skillset that equips them, and their organisations,to succeed.

Building on our offer with critical thinking

In our third year of operation, Economist Education ran six courses
through 27 course presentations. Corporate sales continued to grow,with our online course sales being supplemented with accelerated
two-day workshops for whole teams. And the audience for ourcourses is increasingly international—we were joined by more than
2,000 students from more than 100 countries, with the majorityof participants living outside America and Britain. With a course
completion rate of 91%, our students reported a satisfaction rateof 88%.

Our Data storytelling and visualisation course is another big success,while our topical courses on international relations, climate change
and fintech continue to attract learners and bring informed analysis
and practical insights to executives around the world.

Business writing and storytelling remains our best-selling course,
attracting students from a broad base that includes financial andprofessional services, the tech sector, governments and NGOs.
This year we delivered in-person courses for selected corporateclients, in addition to the six-week online experience.

This year we added Critical thinking and decision-making, a new
course providing the tools and skills to avoid cognitive bias, reason
with rigour and harness artificial intelligence effectively in theworkplace—a course that featured insights from the lateprizewinning behavioural scientist, Daniel Kahneman.
Our forthcoming course, AI in business will focus on the practicalskills needed to use AI, and on applying AI in organisations.

Economist Education at a glance27

course presentations

2,000
students

100+
countries

Our six courses• Business writing and storytelling• Data storytelling and visualisation• Critical thinking and decision-making• International relations and thefuture of geopolitics• Climate change and sustainability
in business• Fintech and the future of finance“Insightful, inspiring, challenging—and thoroughly enjoyable, too”

Caution:low-hanging fruit
Learn why business writing andorchards don’t mix
Ditch the corporate jargon and clichés. Learn how tocommunicate effectively for business with our online course.

Paul Watts, a distinguished analyst
at the Information Security Forum,
advises company boards and otherbusiness stakeholders on cybersecurity. Here he describes how
Economist Education’s businesswriting course improved his
communication skills.
“Years of dealing with non-technical stakeholders haveshown me the importance of communicating in a waythat is relatable and jargon-free, as well as engaging,
informative and inspiring.

Explore the psychology, craft and purpose of writing by learningwith a global cohort and specialists from The Economist.

Learn more at:
economist.com/writing-course

Our Business writing
and storytelling course
takes a “tools, not rules”
approach to help
students masterwriting for business.

“I went looking for a course that would help me hone
my writing and storytelling skills and reflect on my own
areas of weakness. Economist Education’s course gave
me a perfect way to learn, share and develop my skills.
I found the course insightful, inspiring, challenging—andthoroughly enjoyable, too. In fact, theInformation Security Forum has been so
impressed that we are in the process ofmaking the course a part of the training
we offer to our researchers."
Read more

The Economist Group annual report and accounts 2024

27

Business review Economist Impact

Economist Impact brings together twobusiness formats: Partnerships and Events.
We offer a unique model for clients whowant to lead on the issues that matter
most, drawing on an unmatched portfolioof capabilities including policy researchand insights, multimedia content,
global events and advertising.

28

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

Catalysing progress for clients.
“Our partnerships help clients takeleadership on the issues that matter
most—creating unique value for themand helping to drive change.”
Claudia Malley
President/managing director, Economist Impact—Partnerships

What we offer

Economist Impact at a glance

Impact initiatives£99.1mPolicy research and insights

revenue, 16% decrease v 2023

Multimedia content

36%

Scheduled and custom events
Advertising

share of sales from integrated business*

500+

Community engagement

clients*Integrated business is where clients purchase ourpolicy research and insights together with events,
content and/or media.

Insight + innovation + influence= Impact
The Economist Group annual report and accounts 2024

29

Business review Economist Impact

Economist Impact works with organisations around theworld to further their missions and catalyse progress
through an integrated partnership approach that draws
from a combination of independent policy research,
multimedia content, high-profile events and advertising
to engage the Group's influential audience.
Because we're client-facing, we are the part of the Group that's
most exposed when organisations tighten budgets and alter plans in
response to challenging business cycles. Revenues were challenged
due to the tough trading conditions of 2024—but we adapted rapidly
by reinforcing advertising products and capabilities and by creating
new Impact Initiatives products to provide solutions for clients.
Early feedback is showing that this more agile approach is resonatingwith customers, and we believe it will enable us to return to growth.

36%	share of sales from
integrated businessAwardsWINNER in The Drum’s B2B
awards for Trade in Transition(supported by DP World)

BRONZE WINNER within the
Sustainability, Environment &Climate—Research Projects
or Publications category at The
Anthem Awards for Back to Blue

BRONZE AND PEOPLE'S
VOICE WINNER in the 2023 Lovieawards in the Best Use of Data
Visualisation category

30

Read more

Rooted in insight, delivering impact
Together with companies, non-profits, foundations and governmentorganisations, we design programmes that allow our partners tolead on the issues that matter most, to both their organisations andto the world at large, in the critical areas around sustainability,
health and new globalisation.
The differentiated impact and value we deliver can be best seen
through our client-supported partnerships, including our workwith Haleon on the Health Inclusivity Index (see page 31), The
Procurement Imperative with SAP, and The Sustainability Project,a forum to advance sustainability solutions, with digital-innovation
partner Infosys. In our third year working with Infosys we developedand introduced a new interactive digital tool, the Value Chain
Navigator, designed to change the way businesses understand,manage and reduce their scope 3 emissions.
Further examples of the important work created for clients thisyear include Beyond the Surface, supported by Blancpain, whichleverages visual storytelling to reveal research insights and frame
the critical role of Marine Protected Areas in the context of the
global goal to protect at least 30% of oceans by 2030—a goal thatcannot be achieved without urgent action.

Read more

Read more

The Economist Group annual report and accounts 2024

The Science of Obesity, supported by Novo Nordisk, is a multimedia
thought-leadership content series that simplifies complex scientificinformation to challenge misconceptions around the causes ofobesity—another example of how we bring depth and insight toa critical issue and amplify it through our communication expertise.
During the year, Economist Impact was recognised within theindustry through a range of awards, including as winner of thePartnership/Collaboration category in The Drum’s B2B awards
for Trade in Transition (supported by DP World), and Bronze winner
within the Sustainability, Environment & Climate—Research Projects
or Publications category at The Anthem Awards for Back to Blue(an initiative of Economist Impact and The Nippon Foundation).

S T R AT E G I C R E P O R T

CASE STUDIES

Measuring good health:the Health Inclusivity Index, supported by Haleon
Many countries want to achieve greater health inclusivity—
but need better data to guide their policymaking.
The Health Inclusivity Index, supported by Haleon, provides
in-depth analysis of the extent of health inclusivity in
40 countries across three indicators—health in society,inclusive health systems, and people and community andenvironment. The programme began by examining countrylevel policies and strategies, and evolved in its second
phase to explore the impact on people through real-world
implementation and access to healthcare services.

The Health
Inclusivity Index
Measuring progress towards
good health for everyone

Supported by

The programme highlights the benefits that Economist
Impact can offer clients addressing essential social
issues—combining rigorous research with an extensive
series of articles, videos and infographics in a cutting-edge
digital hub that underscores Haleon's thought leadershipin this field. It continued to win recognition this year, too,
becoming the Bronze and People's Voice winner in the 2023
Lovie awards in the Best Use of Data Visualisation category.

Rocket fuel and reality—the Space Economy Summit“The space economy, now a vital backbone of global
industries, demands strategies grounded in reality, as wellas rocket fuel for sustained growth. This is not aboutbillionaires joyriding in space. Today, as we try to counterclimate change and leverage space data to unlock newcommercial opportunities, space is everyone’s business.

Economist Impact Events convenes expert
speakers and attendees to catalyse thinking
on issues that matter. The Space Economy
Summit brought together attendees from six
continents and 20 industries to engage with79 expert in-person speakers and 67 virtual
speakers in a two-day hybrid event that
explored the opportunities presented by the
final frontier.

“On this theme of ‘maximising returns to Earth' from space,in October 2023 Economist Impact launched a groundbreaking new event into the stratosphere, attracting 429
in-person attendees and achieving a Net Promoter Scoreof +89. Held in Los Angeles and online, with astronauts
and asteroid rovers aplenty, the Space Economy Summit
served as a pivotal nexus for space-sector leaders toconverge with industry. Humankind is at a once-in-a-species
moment where it is not going back to the Moon to step on
it but to stay on it, to build on it and to launch further into
the universe from it. By 2035, the space economy is set
to reach $1.8trn, up from $630bn in 2023 (WEF). In 2024,
the journey continues as the summit moves to Lisbon.
Ad astra!”
Helen Ponsford
Senior programme editor, head of trade, technology and industry
events programming, Economist Impact EventsThe Economist Group annual report and accounts 2024

31

Business review Economist Impact

Economist Impact Events
Creating the space for insights to become actionable.
“Attendees come away with true andvaluable insights, because they’ve
experienced outstanding, well-curated
content, heard the best speakers, andtapped into channels and platforms that
help them catalyse what they’ve learnt.”
Ian Hemming
Managing director, Economist Impact—Events

What we offer
We create actionable insights for clients in three main ways:
Scheduled events—designed and researched by us, withThe Economist editorial approval, and drawing on our expertiseto convene delegates and sponsors
Custom events—created by us with original, engaging content to
attract specific target audiences to meet individual client needs
EuroFinance events—sector-leading events designed by us withhigh-quality content tailored to the demands of the company-treasurerand finance-specialist community

2,200	delegates from 60 countries at The EuroFinanceInternational Treasury Management event in Barcelona
32

The Economist Group annual report and accounts 2024

Economist Impact Events at a glance

136
events35,000+attendees571

sponsors

S T R AT E G I C R E P O R T+65	net promoter score

A third consecutive year of margin growth in Economist
Impact Events shows that demand for authoritative,
world-class insights remains strong, even when client
budgets come under pressure in the business cycle.
The key to successful events is quality. Attendees need to knowthat they'll come away with true and valuable insights, because
they've experienced outstanding, well-curated content, heard thebest speakers, and tapped into channels and platforms that help
them catalyse what they've learnt and put it to use.
We've maintained our focus on world-class quality, seeing
another year of improvement in our average net promoter score(NPS)—a standard industry measure that ranks events from-100 to +100. We scored +65—far in excess of the industry
average of +11. And our commitment to excellence is reflectedin our results—while clients slowed their spending on smaller
custom events, we grew margin this year by making sure ourmarquee events continued to attract and retain attendees,
and by staying alert to our cost base.

In-person events back in vogue
We continue to offer insight in three main ways: through scheduled
events, custom events and our specialist EuroFinance events,
all with a broad focus on subject areas that are highly relevant toour clients—sustainability; trade, technology and industry; health;financial services; and global treasury.
Virtual events proved their worth during the pandemic, and wecontinue to run hybrid formats, but it is clear that large, in-person
events are back in vogue. The EuroFinance International Treasury
Management event is our largest, and was held in Barcelona in
September 2023. It attracted a record 2,200 delegates from some
60 countries, representing more than 800 companies—who could
hear from over 180 expert speakers. Our ninth annual Sustainability
Week, held in London in March 2024 and incorporating theEnergy Transition Summit, drew 1,499 attendees looking for
better understanding of the trends and challenges in climate
and environmental action. And we launched several new events,
including the online and in-person Space Economy Summit(see page 31).

35,000+All our events draw on the resources and strengths of the Group
as a whole, and are increasingly integrated with the wider offer
provided by Economist Impact and Economist Intelligence—giving
clients and sponsors access to the “red thread” of excellence thatruns through The Economist Group.

	attendees

The Economist Group annual report and accounts 2024

33

Business review Economist Intelligence

Economist Intelligence is made up of
three separate products—EIU, Corporate
Network and Clearstate—which help
clients understand their operating
environment, navigate risks andopportunities, and move theirorganisations forward.

34

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

Helping clients navigate volatility throughinsights and analysis.
“The continued enhancements to our digitalproducts and services are designed to help
clients successfully steer through volatile times.
This has contributed to retention rates above
91% and growth in EIU’s subscription baseof 4%, demonstrating how central Economist
Intelligence is to our clients’ macro analysis.”Leon Saunders Calvert
President/managing director, Economist Intelligence

Economist Intelligence at a glance

What we offer£50m

Global economic forecasts

91%

Medium-term forecasts for 200 geographies

revenueretention rate in EIU subscriptions

Holistic country analysis, incorporating economics, politics,
policy, industry and the business environment
Industry forecasts and trend analysis

4%Comprehensive macroeconomic datasets

200

Speaker bureau services

increase in EIU subscriber basegeographies covered byin-depth analyses

2,000+

A rich database of proprietary risk ratings and rankings,
quantifying hard-to-measure subjective issues
Market intelligence for medtech
C-suite networking

executive members of Economist
Intelligence Corporate Network

The Economist Group annual report and accounts 2024

35

Business review Economist Intelligence

We help clients analyse the forces shaping their world,so they can think, decide and act.
We provide rich data, deep analysis and global insight, andcombine The Economist's strict stance on editorial independencewith a reputation for analytical excellence—giving clients
information services they can trust.
We've continued to invest in digital tools and processes to bringour analysis to life for clients, and seen encouraging growthin subscriptions this year. This was partially offset by a decline
in consulting revenue at Clearstate, our medtech business, as it
continued to refocus on its data products. The result is a resilient
overall performance for the year, and a pipeline of new digitalproducts ready to support our customer-base growth in the future.

EIU: award-winning expertise in a complex world
EIU is a critical asset to clients in volatile times, providing deep
insights into complex geopolitical and economic dynamics that
help clients identify opportunities, trends and risks on global andnational levels.
EIU recorded its fourth consecutive year of subscriber growth
this year, adding 4% to a subscriber base that includes blue-chipclients such as governments, financial-services firms, multinational
corporations and academic institutions, and giving subscribers
access to specialist analytical content on over 200 geographiesin developed and emerging markets. Growth in subscriptions
was global, and strongest in China and Europe. The retention
rate was 91%.
We've continued to build our offer of digital products and services,and the systems that enable clients to access and integrate ourinsights. These include a new content management system
which will be ready for launch in 2025, a new add-in tool launchedin September 2023, and our new data-visualisation tool (see page 37),
which will make it easier for clients to take our data and analysis
and create charting assets to inform their thinking.
Our core platform, EIU Viewpoint, now has more than 15,000
users and contains a range of tools that enable clients to monitor
developments in security, politics and business stability in
26 industry sectors across 180 markets.
EIU also offers a speaker bureau service, which delivers bespoke
briefings and presentations at conferences and in boardrooms,
as well as EIU in-person events, which were held this year in Dubai,
Hong Kong, London and New York.
EIU was named the world's most accurate economic forecaster,
securing 49 first-place rankings in the FocusEconomics Analyst
Forecast Awards for six key macroeconomic indicators across
100 countries and 21 commodities.

36

The Economist Group annual report and accounts 2024

Corporate Network: bringing leaders together, equippedwith analysis
The Economist Intelligence Corporate Network brings together
individuals who hold influential positions in their region’s largest andmost successful corporations, encouraging discussions of regional
trends and issues that are supported by our analysis and forecasting
services. This year saw record attendances at roundtable meetingsand events, with the Regional Strategic Forecast series of
discussions taking place in nine cities across Asia.

Clearstate: data intelligence for the medtech sector
Clearstate helps medtech and healthcare organisations around theworld build successful and sustainable businesses through data
intelligence, market research and business consulting. We curate
insights, trends and forecasts covering key sectors including in-vitro
diagnostics (IVD), surgical devices and medical consumables on
topics ranging from point-of-care testing to molecular diagnostics
and robotic surgery. We have a specific focus on granular data forkey market segments, including IVD.
We continue to invest in enhancing the quality and accessibilityof Clearstate's proprietary data, helping clients visualise and apply
our insights and navigate their markets.

91%	subscription retention rate4%	increase in EIU subscriber base

S T R AT E G I C R E P O R T

C A S E S T U DY

Bringing data to life:
powerful charting tools from EIU
EIU delivers actionable insights—and is always seeking new ways to communicate data
in ways that help clients understand, decide and act. Fiona Mackie, regional director,
Latin America, Economist Intelligence, describes the work we're doing to enhance how
we, and our clients, model and visualise the products of our world-class analysis.

“This past year we have made significant
investment in transforming our technology
and the tools we use to power our content.
We have embarked on a major upgrade toour data architecture, laying foundations
that will allow us to ingest higher volumes ofhigh-frequency data and will ensure that ourforecasting and modelling capabilities remain
relevant, flexible and continue to deliver theaccuracy our clients expect.
“We are deep into a year-long project toreplace our content production tools.
We are focused on empowering our analysts
to showcase their expertise and thought
leadership, unconstrained by processing
tasks or the legacy structures of old systems.
And front-running this transformation has
been the launch of a powerful new charting
tool that is dramatically enhancing thedata-visualisation capabilities of the team,enabling more data-led storytelling thatbrings our wealth of data to life."
Fiona Mackie
Regional director, Latin America

The Economist Group annual report and accounts 2024

37

Sustainability at The Economist GroupOur purpose is to champion progress ineverything we do. Through independent,
evidence-based journalism and information
services, we help audiences address thesystemic environmental and social challenges
facing the world. At the same time, we mustalso lead when it comes to addressing our own
impacts, by pursuing progress for our colleagues
and communities, and the environment.

38

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

Sustainability at The Economist Group
Ensuring progress has sustainable foundations.
“Producing insightful, independent editorial
and information services will always be themain way we champion progress. But wemust also act responsibly in the stewardshipof our own environmental and social impacts,
including our approach to human rights,
nature and the climate.”
Oscar GrutChief legal officer, Group company secretary, head of ESG

Sustainable and inclusive growth: the foundation of
our strategy
The Economist Group believes in actions based on insights—and
we apply that approach to ensuring that our growth as a businessis sustainable and inclusive.

Read more
about oursustainability
reportingIn 2023, we conducted our first assessment to understand which
environmental, social and governance (ESG) issues are mostmaterial to the Group. This analysis underlined that the biggest
positive impact we can have on social and environmental issues
is created by empowering individuals, governments and businesses
to understand and address the challenges facing the world.
Producing insightful, independent editorial and information services
will always be the main way we champion progress. But we mustalso act responsibly in the stewardship of our own environmental
and social impacts, including our approach to human rights, natureand the climate.
In response to our analysis, we have streamlined our ESG
strategy to focus on three key priorities—content, colleagues
and communities, and climate and environment. Ambitious targets
and metrics within each area are designed to ensure our strategy
is impactful and measurable.
We publish a separate sustainability report to provide our
stakeholders with a transparent view of our progress andchallenges. It complements this annual report—which contains
key information about our governance—and provides detailed
insights into the steps we are taking to embed sustainability into
the foundation of our growth strategy and operations.

Our sustainability reporting
Our online sustainability report provides greater depth
and breadth of insight into:• The Economist’s journalism and the work of the wider
Group, including Economist Impact and Economist
Intelligence, to deliver insight and catalyse action
on ESG issues• Our continued pursuit of progress in our workplaces, andthrough our colleagues’ careers and well-being, and ouraffinity groups• Our support of local and global communities through
The Economist Educational Foundation and The Economist
Charitable Trust, both independent charities• Our progress on managing our impacts on climate
and nature

The Economist Group annual report and accounts 2024

39

Sustainability at The Economist Group

30%

42%

	reduction in annual
greenhouse-gas emissions
since base year 2020,
while growing our business	of our global top pay
quartile are women**Annual base salaries, adjusted forpurchasing-power parity

Our purpose: Dedicated to the pursuit of progressfor individuals, organisations and the world

Our three key ESG priorities

Content

Colleagues andcommunities

Climate andenvironment

We enable progress through the insightand analysis delivered by our editorial
and information services—providing
a guide to a changing world andempowering informed choices about
critical social and environmental issues.

We champion and foster diversity,
equity and inclusion, and fairly provide
colleagues with resources andopportunities to thrive, while reaching
beyond our business to enable accessto information and critical-thinking
skills, especially for disadvantaged
young people.

We take ambitious climate action andweave environmental sustainability into
the fabric of our growth and operations.

Underpinned by robust governance and a strong culture

40

The Economist Group annual report and accounts 2024

To speak with authority, we must preserve our independence.
We must also be leaders when it comes to our own footprint
and impacts. This includes managing our climate and nature
impacts, supporting diversity and respecting human rights.

We reviewed our materiality assessment—conducted in 2023 withthe support of SLR, a sustainability consultancy—for significant
changes to the environmental, social, and governance (ESG) issues
material to The Economist Group. This year, we included AI in our
matrix of material ESG issues, reflecting its growing importancesince the previous reporting period. This addition is based on
workshops and reviews with internal stakeholders.

We apply the concept of double materiality, following thedefinitions of the European Sustainability Reporting Standards 1(ESRS) general requirements, and report on financial materiality,
which includes issues that may drive risks and opportunities witha potential material impact on our financial situation; and impact
materiality, which identifies issues that may have the most significant
actual or potential impact on our stakeholders or the environment.

Our most material issues remain unchanged and relate to our output.
The biggest impact we can have on social and environmental issues
is empowering people, governments and businesses to understandand address the critical challenges and changes facing the world.
The Economist Group’s material ESG issues
HIGH

A

B

Impact materiality

C

LOW

K
F
G

D
E

I

H
J

Financial materiality

HIGH

A

Independent, high-quality journalism

B

Enable decision-making on
ESG issues

C

Diversity of thought, gender, ethnicity

D

Corporate governanceE

Corporate partnerships

F

Impact on climate and natureG

Sustainable value chains

H

Talent attraction and development

I

Data privacy

J

Cyber-security

K

AI

Issues we are watching: Trust in institutions / Freedom of expression / Media literacy
C A S E S T U DY

Understanding our impacts: more digital, lower emissions
The Economist Group is now a digital-first business—and digital products
will be the main drivers of our growth in the future. We've always believedthat moving from print to digital would be likely to improve our carbon
footprint—but we also know that data use has its own consequences foremissions, throughout the value chain. Understanding the full life-cycle
impacts of our digital products helps us take measures to address
them—so in 2023 we set out to analyse them.
Our analysis, conducted in partnership with DIMPACT and described indetail in our sustainability report, assessed the carbon footprint of serving
The Economist’s content digitally to our readers through its website and apps,
and compared it with The Economist’s print product life-cycle assessment.
The findings, modelled based on industry data, identified two major
emissions hotspots for our digital products: emissions from end-user
devices, which relate to the manufacture of digital devices; and emissions
from product use, which relate to serving our products globally. Despite
these hotspots, however, the finding of the assessment was emphatic—the
impact of our digital product is around 12 times lower than the average global
emissions impact of the print version. The assessment also gives us
a baseline to monitor the future impact of AI on our footprint.

268g
	global average CO2eemissions per print issue

22g	estimated average
CO2e emissions
per digital issue	(Estimated average subscriber's
weekly digital use)

The Economist Group annual report and accounts 2024

41

S T R AT E G I C R E P O R T

Our most material issues

Sustainability at The Economist Group

Our colleagues“We’re evolving our workplaces to drivea transformed business. We wantto ensure our colleagues are supported
by a diverse, inclusive environment
where high performance is enabled
and rewarded.”
Kristin Anderson
Chief people officer

1,643 colleagues in 25 countries pursue
progress in The Economist Group, including
308 colleagues in our editorial team.

52%	of colleagues are women48%

	of colleagues are black, Asian,multi or diverse ethnicity

Equipping colleagues—and the business—for an inclusive, highperformance future
Our colleagues are a vital part of the “red thread” of excellence that runs through
The Economist Group. Their expertise and dedication to the pursuit of progress havebeen central to the transformation of the business in the past few years—and they are
crucial to our future growth.
As a Group, we need to make sure that colleagues are supported by a diverse, inclusive
environment where high performance is enabled and rewarded. And just as we haveinvested in the technology and processes that have transformed the Group into a successful
digital business, we continue to invest in colleagues and in the resources and tools thatempower them.

Enabling excellence, and supporting engagement and learning42%	of our global top pay
quartile are women**Annual base salaries, adjusted
for purchasing-power parity

This year, we've placed a particular focus on people managers—ensuring that the leadersin the business have the capabilities and resources to support colleagues and enable highperformance. Our people manager forum, launched in January 2024, has helped create
a community of managers, whom we have supported with information on topics suchas onboarding, compensation, performance management and goal-setting. Our people
managers are also better equipped to further improve employee engagement, which has
already seen significant progress—from 2019 to 2023, our Employee Net Promoter Score(eNPS) rose from 6 to 33, placing us in the top quartile for our industry.
At the same time, we've continued to strengthen the career-development resources
available to colleagues, including our career-development platform, Degreed. Degreed
continues to give colleagues learning opportunities tailored to their personal goals andinterests through access to a huge range of content and training programmes. In total,
877 colleagues were active users in 2023. All new hires are given access to Degreed aspart of their onboarding, and in total, 9,438 modules were accessed during the year.

42

The Economist Group annual report and accounts 2024

Our values
Independence
We are not bound to any party or interest and encourage
exploration and free-thinking. We champion freedom, bothwithin our organisation and around the world.
Integrity
We are bold in our efforts to uncover the truth and stand up
for what we believe in. We inspire trust through our rigour,fact-checking and transparency.
Excellence
We aspire to the highest standards in all we do. We are ambitious
and inquisitive in our pursuit of continuous progress and innovation.

We still have more to do, particularly at a global level. In fact,
ensuring our systems and processes are consistent and scalable
globally has been another focus this year across all aspects of ourhuman-resources work, and we will continue to roll out global
improvements in the coming months.

Inclusivity
We value diversity in thought and background and encourage
healthy debate with a breadth of perspectives. We treat ourcolleagues and customers fairly and respectfully.
Openness
We foster a collaborative and empathetic culture conduciveto the interests, wit and initiative of our colleagues. New ideas
are our lifeblood.

3

Gender

2

2

1

S T R AT E G I C R E P O R T

Diversity and inclusion remain high priorities for our colleagues,
and for the business. We continue to set clear goals to increase
equity in opportunities. Quarterly reports containing gender andethnicity metrics are provided to our business leaders, empowering
them to adapt and refine our inclusion strategy. We have madeprogress this year on our UK gender pay gap, with the lowest
disparities recorded since mandatory reporting began in 2017.
We have continued to introduce a range of initiatives to improve
how we recruit and retain a diverse workforce, especially in tech,a historically male-dominated sector.

Gender

1

Employee engagement

5 6

5

1
2

We support our annual employee engagement survey, Your Voice,with regular pulse surveys to check in on how our colleagues feel
about our business, and their careers. In 2023, 80% of colleagues
took part in our Your Voice survey, with an average engagementscore of 7.8, which is above the benchmark for our sector.

6

3

1

Ethnicity

4

Ethnicity

Flexible working

The Economist (editorial)

The Economist Group

Our hybrid-working policy is designed to give colleagues the
freedom to work at their best, with most full-time colleagues
expected to attend an office a minimum of two days a week, andable to work from abroad for up to five weeks a year. Editorial
colleagues at The Economist have different flexibility given thenature of their work.

Gender and ethnicity
of editorial colleagues
January 2024, % of total*

Gender and ethnicity
of non-editorial colleagues
January 2024, % of total*

Gender pay gap

4

3 2

Gender%Gender

%1 Female

47.0

1 Female

54.0

2 Male53.0

2 Male45.9

3 Non-binary

0.1

3 Non-binarynil

Ethnicity

Ethnicity
11.1

1 Asian

42.1

2 Black

2.2

2 Black

3.6

3 Multiple ethnicity

3.5

3 Multiple ethnicity

2.1

4 White, British

77.1

4 White45.6

5 Other/not disclosed

5.4

5 Other/not disclosed

5.3

6 Unknown/prefer not to say

0.7

6 Unknown/prefer not to say

1.3

1 AsianBased on the snapshot date of April 5th 2023,
we reported significant progress in narrowing our
gender pay gap. Our UK data shows that our gender
pay gap has narrowed by 4.1 percentage points
at the median (from 20.4% to 16.3%) and 4.2
percentage points at the mean (from 21% to 16.8%)
compared with April 2022. These figures markthe lowest disparities recorded since mandatory
reporting began in 2017. The proportion of womenin senior roles continues to grow.
There is still more work to be done, particularly
in ensuring that this progress is sustained andreflected globally.
We publish our gender pay gap report on
our website.

Read more*Includes employees on permanent andfixed-term contracts.

The Economist Group annual report and accounts 2024

43

Sustainability at The Economist Group

Climate and environment“Our digital-first Group strategy isdelivering sustainable growth andvalue for all our stakeholders, while
helping to drive progress on ouremissions-reduction ambitions.”
Emily Jackson-Kessler
SVP sustainability

Climate change is an unprecedented challenge to progress. Our analysis
and insights catalyse others to take climate action—but we are also
reducing our own impacts.
Our environmental sustainability framework outlines three steps
to progress: manage, measure, mitigate.

Our environmental sustainability framework

ManageMeasureMitigate

Progress

Weave sustainability into
the fabric of our growthand operations

Build a plan andunderstanding
based on data

Harness the passion andbe an active leader

Results• Raise Group awareness ofclimate change• Accountability forthe strategy rests with theBoard and leadership team• The Economist
Sustainability Groupis our formalised internal
network• Measure greenhouse-gas(GHG) emissions across thefull value chain• Digital and print life-cycle
assessments• Plastics footprint• Automated carbon
reporting• Climate-related risks
and opportunities• Science-based emissionsreduction target of 43% inline with a 1.5ºC-aligned
pathway by 2030
• Plan for net zero by 2045
• Invest in renewable energy• Support innovative climate
solutions and technologies• 30% emissions reduction
from base year 2020 in linewith validated sciencebased target• 50% reduction in the use ofplastics in our supply chain• Accelerated digitalproduct growth

44

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

ManageOur commitment to climate action

Mitigate
Our reduction strategy

We are taking important steps towards our science-basednear-term emissions-reduction target to 2030—aligned withthe aim of the Paris agreement to limit global warming frompre-industrial levels to 1.5°C—by continuing to deliver on ourcommitment to reduce our carbon footprint. Our longer-term
ambition is to reach net zero by 2045.
At the same time, we need to understand how climate change isaffecting our business and adapt to its impacts. Climate-related
extreme weather conditions have already disrupted our businessand supply chain in North America, and we expect impacts
to increase over time (see our TCFD report on pages 48-51).
Managing our carbon footprint and measuring climate-change
risk is critical for our business—and our efforts in this area wererecognised by CDP (formerly the Carbon Disclosure Project)with a B score for our climate-change disclosure in 2023.

To reduce the impact of our carbon footprint as part of ourpathway to net zero, our reduction strategy has four pillars:
1	Digital transformation: a digital-first approach acrossour businesses
2 Travel: limit business travel, in particular flights
3	Energy: improve office energy efficiency and purchaserenewable-energy attribute certificates4	Value chain: engagement and innovation with key
business partners
Engaging with our value chain is critical to achieving our ambition.
Around 98% of The Economist Group’s carbon footprint is from goods
and services provided by partners to deliver our core products andservices. There are some clear steps we can take:• Collaborate and innovate with our suppliers• Encourage key value-chain partners to set science-based
emissions-reduction targets• Improve supplier-specific emissions data collection
To support these steps, The Economist Group has become a CDP
Supply Chain Partner, joining over 300 companies committed
to engaging their suppliers and addressing their supply chain
environmental impacts, risks and opportunities. Our business
partner code, launched in June 2023, outlines practices andstandards we expect to see demonstrated across a wide range
of issues, including climate and the environment (see our business
partner code on The Economist Group’s website for more information).

MeasureOur environmental impact
We have now conducted our sixth annual GHG emissions inventory
in accordance with the Corporate Standard of the Greenhouse Gas
Protocol, considered the gold standard in emissions accounting
and reporting. Our carbon-footprint measurement was conductedby CO2 AI, a carbon-management software platform developed by
Boston Consulting Group. The Economist Group's GHG emissions
for the period 2023-24 amount to 37.22 kilotonnes of carbon
dioxide equivalent (CO2e), representing a 0.1% decrease comparedwith the previous reporting period. We have surpassed our 25%
reduction target by 2025 ahead of schedule. This takes us a step
closer to achieving our new 2030 near-term emissions-reduction
target, validated by the Science Based Targets initiative (SBTi),a coalition for corporate climate action. Our target overall is
to reduce emissions by 43% by 2030 (see detail on page 47,“Progress towards our 1.5°C-aligned science-based target").
We are signatories to the Business Ambition for 1.5°C
and UNFCCC Race to Zero campaigns.
We measure carbon emissions across our entire value chain,including direct scope 1 emissions and indirect scopes 2 and 3
emissions. Reductions are driven, in particular, by lower print andproduction volumes of The Economist newspaper as customers
increasingly choose digital over print. This year, we have also taken
important steps to improve the measurement of our footprint,
which now includes around 33% of primary data. This includes
supplier-specific data from key paper and print production
partners, and specific activity-level data, such as detailed global
logistics mapping. These improvements were used to adjust our2023 footprint, showing a larger reduction in our scope 3
emissions than previously reported.
Our impact

30%

	our GHG emissions
reduction since baseyear 2020
12

Emission scopes

The Economist
Group emissions by
GHG category

Total kt CO2e emissions

1 Scope 1

0.19

2 Scope 2

0.56

3 Scope 3

36.47

3

Total Group CO2 emissions footprint: 37.22kt CO2e
Year-on-year progress: 0.1% reduction from 2023
Progress since base year 2020: 30% reduction
Renewable-energy attribute certificates (EACs): 1.80kt
The Economist Group annual report and accounts 2024

45

Sustainability at The Economist Group Climate and environment

Progress
Results

The Economist Group’s global greenhouse-gas emissions (GHG)
Base year
2020 adjusted
kt CO2e2023 adjusted
kt CO2e2024
kt CO2eYear-on-year
variance

Direct scope 1 emissions

0.22

0.36

0.19

-48.5%

Indirect scope 2 emissions

1.71

0.57

0.56

-1.6%

Location-based approach

1.80

0.58

0.57

-2.4%

Market-based approach

1.71

0.57

0.56

-1.6%

3.01 Purchased goods and services

36.99

27.93

28.91

3.5%

3.02 Capital goods

2.34

1.39

1.06

-23.6%

3.03 Fuel- & energy-related activities

0.15

0.06

0.04

-33.2%

Category

Indirect scope 3 emissions by category

3.04 Upstream transport and distribution

4.77

1.17

1.15

-2.0%

3.05 Waste generated in operations

0.08

0.02

0.01

-36.4%

3.06 Business travel

1.64

1.56

1.77

13.6%

3.07 Employee commuting

1.01

1.24

1.24

-0.2%

3.08 Upstream leased assets

0.86

1.05

0.79

-24.9%

3.09 Downstream transport and distribution

n/a

n/a

n/a

n/a

3.10 Processing of sold products

n/a

n/a

n/a

n/a

3.11

Use of sold products

0.07

0.74

0.48

-34.6%

3.12

End-of-life treatment of sold products

1.92

1.16

1.01

-12.9%

3.13

Downstream leased assets

n/a

n/a

n/a

n/a

3.14

Franchises

n/a

n/a

n/a

n/a

3.15

Investments

n/a

n/a

n/a

n/a

Scope 3

49.84

36.33

36.47

0.14%

Total kt CO2e

51.77

37.27

37.22

-0.1%

Group GHG intensity/tonnes CO2e per £m turnover (scopes 1, 2 and 3)

182

99

99

0.0%

Group GHG intensity/tonnes CO2e per £m profit after tax (scopes 1, 2 and 3)

1379

1188

1095

-7.8%

Notes on data
Scope 1 emissions are marginal, as The Economist Group does not directly operate vehicle fleets. Scope 2 emissions comprise all electricity consumed at Group offices worldwide, and emissions
associated with the production and distribution of grid energy. The change in scope 1 emissions can be largely attributed to moving our Birmingham operations to an office with lower direct emissions.
Indirect scope 3 emissions encompass all value-chain and product-portfolio emissions, and have been reported in line with the 15 standard GHG categories for scope 3 emissions. We have taken
important steps to improve the accuracy of our footprint calculation, which now includes around 33% primary data. This includes supplier-specific data from key paper and print production partners,
and specific activity-level data, such as detailed global logistics mapping, and draws upon the findings of the digital life-cycle analysis conducted in early 2024. Reductions in scope 3 emissions
reflect a reduction in print and production volumes of The Economist newspaper (included in 3.01) as customers increasingly choose digital over print.
Energy Attribute Certificates (EACs): We occupy leased offices with few opportunities for onsite energy generation, and rely on green energy tariffs and EACs to purchase renewable energy equal
to 100% of our global electricity consumption for offices and print sites. In 2024 we purchased 1.80kt CO2e of EACs. We currently do not account for EACs as part of our total greenhouse-gas
emissions, and await upcoming revised guidance from the Greenhouse Gas Protocol Accounting Standard on accounting rules.

46

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

UK Streamlined Energy and Carbon Reporting (SECR)
In line with the requirements set out in the UK government’s guidance on Streamlined Energy and Carbon
Reporting, the table below represents The Economist Group’s energy and GHG footprint from UK
operations (from April 1st to March 31st), calculated in accordance with the Greenhouse Gas Protocol.
The scope of this data comprises two office sites located in London and Birmingham in the UK. In 2024
the UK accounted for 41% of our global scope 1 and 2 emissions, outlined in the table below.
UK operations

FY23 adjusted

FY24

Natural gas (kWh)1,320,000

801,970

Electricity (kWh)485,690

488,520

Total UK energy (kWh)1,805,690

1,290,490

Total UK scope 1 emissions (kt CO2e)

0.27

0.16

UK scope 1 emissions (t CO2e) per £million turnover

1.05

0.59

Total UK scope 2 emissions (kt CO2e)

0.09

0.10

UK scope 2 emissions (t CO2e) per £million turnover

0.36

0.37

Notes on data
Scope 1 emissions decreased in comparison to 2023 by 0.11kt CO2e in 2024. Scope 2 emissions increased in comparison to 2023 by 0.01kt CO2e.
The change in scopes can be attributed to moving our commercial operations from Canary Wharf to the Adelphi building in central London, andmoving our Birmingham operations to an office with lower direct emissions.

Progress towards our 1.5°C-aligned science-based target
Our near-term science-based target aims for a reduction of absolute scope 1 and 2 emissions of 68% by
FY2030 from a FY2020 base year, and a 42% reduction of absolute scope 3 emissions within the same
timeframe. The Economist Group also commits to increase annual sourcing of renewable electricity from
0% in FY2020 to 100% by FY2030.
Current reductions
from baseline(2024 v 2020)

2030
SBTi reduction
target

0.75

61%

68%

49.67

35.40

29%

42%

51.61

36.15

30%

43%

Target2020
base year
kt CO2e2024
kt CO2e

Scope 1

0.22

0.19

Scope 2

1.71

0.56

Scope 1+2

1.93

Scope 3
Total
Notes on data

In 2024 we sourced Energy Attribute Certificates (EACs) equivalent to 100% of our global electricity consumption for offices (scope 2 emissions),
and electricity consumption required for print sites (scope 3 emissions). The figures for our progress towards our science-based target in this tableand our total GHG emissions in the table on the previous page are slightly different. This is because, in line with the Greenhouse Gas Protocol
Accounting Standard, the target uses the market-based approach for scope 2 emissions. It also excludes optional emissions under indirectuse-phase under category 3.11 and employee teleworking under category 3.07.

The Economist Group annual report and accounts 2024

47

Task Force on Climate-related Financial Disclosures (TCFD)

The Economist Group’s TCFD disclosure
The following statement, which is in line with therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), discloses the risks andopportunities of different climate scenarios on all aspectsof our business—whether these are the impacts oftransitioning to a lower-carbon world, or the adaptational
impacts arising from a rapidly warming planet. By continuing
to strengthen our understanding of climate-related risks
and opportunities, we can effectively adapt our businessstrategy in response to climate change. We have applied the
TCFD framework since 2022, and continue to do so this year
on a voluntary basis, as we transition to IFRS Sustainability
Disclosure Standards S1 and S2, developed by theInternational Sustainability Standards Board (ISSB).
Our disclosure is consistent with the 11 recommended
disclosures of the TCFD.

Scenario analysis
Understanding the risks and opportunities posedby climate change
The average global temperature for the 12 months from April 2023
to March 2024 was the highest on record, at 1.58°C above thepre-industrial average, according to Copernicus, Europe’s climatechange monitor. With this increase, temperatures have surpassed
the goal of the Paris agreement, signed in 2015, to limit warming
to 1.5°C above pre-industrial levels. At COP28, hosted in Dubai lastNovember, a global stocktake to assess countries’ progress towards
the goals of the Paris agreement showed that there has been some
improvement in commitments, but much more progress is needed.
If current policies are followed, central estimates of global warming
by 2100 are at around 2.5-2.9°C above pre-industrial levels.
Swift action is critical to limit warming and prevent severe climate
extremes, and requires a comprehensive mitigation response
to include power generation and energy efficiency, transport,
buildings, urbanisation, agriculture and food security, forestry
and consumer choices.

48

The Economist Group annual report and accounts 2024

Due to the uncertain nature of global warming projections, ourscenario analysis holds to the three hypothetical climate states
identiﬁed in last year’s disclosure. These states are summarised intable 1, and are based on external sources, such as the International
Energy Agency (IEA) and the Intergovernmental Panel on Climate
Change’s (IPCC) sixth assessment report (AR6). The mostsigniﬁcant risks and opportunities in terms of likelihood andexpected level of potential impact identiﬁed during the climate
scenario analyses are summarised in table 2. Table 3 summarises
the potential ﬁnancial impacts of these risks and opportunities,
which range from low to very high over the longer term. We aredisclosing risk or opportunity categories in line with the TCFD’sclassiﬁcations. The time horizons are deﬁned as follows: short term:<1 year; medium term: 1-3 years; long term: >3 years.
In 2023, we made changes to our supply chain in the US to adapt
to the climate-related extreme weather conditions that disrupted
our business and supply chain in North America. It is inevitable thatsome areas of our business will face greater disruption than others
as we transition to a low-carbon world. But our assessment
indicates that as we deliver on our strategy of sustainable growthand progress, enabling individuals and organisations to makesense of the climate issues and chart a course through them, anddeveloping a world-class portfolio of digital products, the Groupwill remain resilient across both the 1.5°C and 2°C scenarios
assessed, with a negative impact in the 3°C scenario.

S T R AT E G I C R E P O R T

Table 1 Climate scenarios
1.5°C (by 2050) scenario
Rapid transition to a lowcarbon world
Physical andA rapid transition to a low-carbon
transition aspects economy where technologicaladvances and policy changes limit
global warming to less than 1.5°C
above pre-industrial levels andstabilise the climate.
Adoption of widespread carbonpricing policies. Rapid phase-out
of fossil fuels.

2°C (by 2100) scenario
Slow transition.
Increasingly unmanageable world

3°C (by 2070) scenario
Inaction.
Extreme, irreversible climate change

A slower transition leads to an unstable
and increasingly unmanageable world.
Policy change is piecemeal and erratic.
Increased geopolitical tensions between
leaders and laggards. A fragmented global
policy landscape.
Increase in extreme weather events andwildﬁres which reach unmanageable levels
in some geographies by mid-century.
Signiﬁcant adaptation necessary andfrequent disruption expected.

Failure to act leads to irreversible climatechange. Unstable and in some places
uninhabitable world.
Continued reliance on fossil fuels forenergy and transport.
Large parts of the world become
uninhabitable due to intense heat waves,droughts and wildﬁres. As tipping points
are breached, we see runaway climatechange in the second half of the century.
By 2100, sea-level rise is becoming
a widespread problem for low-lying
coastal areas.

Table 2 Task Force on Climate-related Financial Disclosures (TCFD) summary
TCFD
element

Recommended disclosures

Current approach

Read more

Governance

Describe the Board’s oversightof climate-related risks andopportunities.

The audit and risk committee and the Board regularly review The Economist
Group’s environmental impact, mitigation measures and progress against
reduction targets. The Board is responsible for overseeing sustainability-related
disclosures linked to the Group’s financial statements. The committee meets twicea year and goes through the Group risk register at every meeting.

Pages 64-73

Describe management’s rolein assessing and managing
climate-related risks andopportunities.

Our 2030 emissions-reduction target and climate strategy are approved by ourleadership team and Board, and included in our key performance indicators.
Climate-related risks and opportunities are overseen by the SVP sustainability
and the head of ESG, and reviewed by the risk-management team. Climate-relatedrisks and opportunities are cascaded to the risk registers of each business area,
given the importance of ensuring that these are managed at both Group andbusiness levels.

Pages 39-47

Describe the climate-relatedrisks and opportunities theorganisation has identiﬁed
over the short, medium andlong terms.

With the support of SLR, a sustainability consultancy, we developed scenarios
based on external sources, such as the International Energy Agency (IEA) andIntergovernmental Panel on Climate Change (IPCC), summarised in table 1.
See table 3 for a summary of the risks and opportunities identiﬁed through scenario
analysis that could have a material ﬁnancial impact on The Economist Group.

Table 3

Describe the impact
of climate-related risks
and opportunities on theorganisation’s businesses,
strategy and ﬁnancial
planning.

The Economist Group continues to invest in the digital transformation of thebusiness, a key driver of emissions reductions. Taking into account climate-relatedrisks and opportunities, we have set a science-based emissions-reduction target
to 2030. Our longer-term ambition is to reach net-zero by 2045. To prepare forthe neutralisation of our residual emissions when we reach our net-zero ambition,
we continue to invest in technological and nature-based carbon-removal solutions.
The Economist Group commits to increasing active annual sourcing of renewableelectricity from 0% in FY2020 to 100% by FY2030.

Table 3Strategy

The Economist Group annual report and accounts 2024

49

Task Force on Climate-related Financial Disclosures (TCFD)

Table 2 Task Force on Climate-related Financial Disclosures (TCFD) summary continued
TCFD
element

Recommended disclosures

Current approach

Read more

Strategy
continued

Describe the resilience ofthe organisation’s strategy,
taking into considerationdifferent climate-related
scenarios, including a 2°C
or lower scenario.

Our assessment of risks and opportunities supports our strategy to accelerate
Table 3
digital-product innovation and growth across our portfolio, including expanding thedigital ecosystem of our journalism, content, events and learning platforms. It also
points to signiﬁcant opportunities arising from growing demand for climate-related
products and services, which The Economist Group is well placed to capture.
Our assessment indicates a net ﬁnancial beneﬁt for the Group as we deliver on oursustainable growth strategy—enabling individuals and organisations to navigate
systemic environmental and social issues through our products and services—inthe 1.5°C and 2°C scenarios, but a likely negative impact in the 3°C scenario.

Risk
Describe the organisation’s
management processes for identifying
and assessing climaterelated risks.

The Economist Sustainability Group’s task-force assesses and updates the
specific risks and opportunities associated with climate change, and the transition
to a low-carbon economy, on an annual basis. These identified climate-relatedrisks are managed by each business area.

Pages 38-47
Page 51
Pages 55-56

Describe the organisation’s
processes for managing
climate-related risks.

The SVP sustainability, together with the head of ESG, has formed a task-force toscreen and assess physical and transitional risks and opportunities across ourbusiness areas and products, and understand exposure at operational andsupply-chain level. The task-force is responsible for assessing the financial impactof these risks and opportunities on an annual basis.

Pages 55-56

Describe how processes for
identifying, assessing andmanaging climate-relatedrisks are integrated into theorganisation’s overall risk
management.

Climate-related risks and opportunities are cascaded to each business area
including an assessment of unmitigated and mitigated risk. This is reviewed by theGroup’s chief executive and chief ﬁnancial officer in the same way as other risks.
A summary is submitted to the audit and risk committee of the Board for review.

Page 55
Page 68

Disclose the metrics usedby the organisation to assessclimate-related risks andopportunities in line with
its strategy and riskmanagement process.

We report our absolute GHG emissions across scopes 1, 2 and 3, emissions
intensity, and progress on our validated science-based emissions-reduction
targets in the climate and environment section of the annual report. Emissionsreduction targets are approved by our leadership team and Board, and included
in our key performance indicators and long-term bonus plan.

Page 45
Page 47

Disclose scope 1, 2 and,if appropriate, 3 GHG
emissions, and therelated risks.

The Economist Group reports global scope 1, 2 and 3 GHG emissions in the
climate and environment section of the annual report.

Page 46

Describe the targets usedby the organisation to
manage climate-relatedrisks and opportunities andperformance against targets.

The Economist Group has a validated science-based target (SBT) to reduce
absolute scope 1 and 2 emissions by 68%, and absolute scope 3 emissions
by 42%, by 2030 from a 2020 base year. The Economist Group is also committed
to increasing active annual sourcing of renewable electricity from 0% in 2020 to100% by 2030.

Page 47

Metrics andtargets

50

The Economist Group annual report and accounts 2024

Financial-impact rating:L

Low <£2m

M

Moderate £2m-£5m

High £5m-£10m

H

V

S T R AT E G I C R E P O R T

Table 3 Summary of our most material climate-related risks and opportunities and their estimated impact
Very high >£10m

Potential materiality
TCFD
category

Climate-related
trend

Potential financial
impactPhysical:
Chronic,
long term

Climate-related
supply chain
disruption

Risk: Increases in temperature,
extreme weather events and tree
disease prevalence may affectproduction and distribution processesof The Economist newspaper

Physical:Acute, short
to mediumterm

Impact of extreme
weather conditions
on digital-productdelivery

Risk: Increased regional disruptionof travel networks, physical supply
chains, digital infrastructure, data
centres and energy supply leading
to disruption of product delivery andincreased costs of running events

Physical:
Chronic,
long term

Impact of extreme Risk: Falling productivity, systematicweather conditions talent emigration, disruption to
in climate-sensitive working patterns
areasTransition:
Policy andlegal, short tomedium term

Increased cost ofenergy, carbon
taxes, energysecurity issues

Risk: Increase in operating costs
for paper production, printing,logistics, business travel, data
centres, customer-services centres
and office rental

Transition:
Market,long term

Climate-related
inflation and risingcost of living

Risk: Increase in employee wages
and salaries

Transition:
Reputation,short tolong term

Reputational risks
to brand value

Risk: Reduced brand value of
the Group as a progressive liberalnews organisation in a climatebreakdown scenario leading toa 3°C warmer world

Products
and services,long term

Sustainabilityrelated products
and services

Opportunity: Growing demand for
The Economist Group’s establishedand growing portfolio ofsustainability-related products
and services

Resource
efficiency,
short term

Digital products

Opportunity: Increase in customer
demand for lower-carbon products
across the Group’s product portfolio,
less reliance on physical supply chains

Products andservices,
short term

Talent attraction
and retention

Opportunity: The Economist Group’s
liberal agenda, sustainability portfolio
and commitments will become
increasingly important considerations
for attracting and retaining talent

Net impact
for Group

1.5°C by 2°C by
2050
2100

3°C by
2070

L

H

V

L

L

M

L

M

M

L

L

M

L

L

L

L

L

L

H

H

L

V

V

V

L

L

L

+

+

–

Strategic response

Work with the most reliable and resilient suppliers
Regional production and delivery model
Leverage digital portfolio to ensure continuityof product delivery
Work with the most reliable and resilient suppliers
Business continuity and resilience plans, including
distributed models
Maintain ability to transition to hybrid or virtual events
Increase event budgets to absorb higher
insurance premiums
Develop health and safety guidelines toinclude guidance on a reasonable range
of indoor temperatures
Select energy-efficient office facilities with suitable
insulation, ventilation and cooling
Establish global organisational design and HR
software system(s) with core, common processes
so that work can by absorbed by other locations
The Economist Group has ambitious targets to
reduce GHG emissions and energy use
Supplier engagement, work with most GHGefficient suppliersContinued investment in digital transformation
Monitor climate-related supply-chain disruptions,labour issues and production shortages to predict
inflation trends and adjust budgets accordingly
The Economist Group is committed to drawing
attention to climate issues through its editorial
coverage, and weaving sustainability into the fabricof its growth strategy and operations, to help ensurethat a 3°C warmer world does not happen
Build on a strong portfolio of climate-related
products and services, including The Economist’s
independent editorial coverage, Economist Impact’s
policy insights, marketing solutions and events,
and Economist Intelligence’s country, risk and
ESG rating services
Continued investment in digital transformation andworld-class digital-product delivery

Continue strengthening The Economist Group’s
sustainability agenda and progressive liberal
coverage of climate issues, and showcase thisin recruitment
Analysis indicates that the Group will remain
resilient in the 1.5°C and 2°C scenarios throughincreasing demand for digital products, our portfolioof climate- and sustainability-related products,
less reliance on physical supply chains, and theachievement of our strategic plans and climaterelated commitments. The 3°C scenario would be
likely to have a net negative impact on the business

The Economist Group annual report and accounts 2024

51

Financial review

Resilient revenue and a strong
bottom-line performance.

“The strong performance of
The Economist, now truly
a digital-first business, helped
drive increased profitability for
the Group despite headwinds
in Economist Impact.”
Marcus Roy
Group chief financial officer

Financial performance at a glance

Change onprior year

Constant
currency-3%

in line

+12%

+14%

+9%

+11%

+33%

+33%

+£7.2mn/a

Revenue£367.0m
Operating profit£47.4mEarnings per share

171.6pDividend

160.0p
Net cash before lease liabilities£24.8m52

The Economist Group annual report and accounts 2024

S T R AT E G I C R E P O R T

Revenue

Balance sheet

Revenue of £367.0m was down 3% on the prior year. The weaker
US dollar to sterling exchange rate compared with the prior year
reduced revenue by £8.6m and so, on a constant-currency basis,revenue was in line with last year. Revenue for The Economist
increased by 5% at actual exchange rates, and by 7% at constantcurrency, reflecting the annual price rise, careful management of
discounting and an additional reporting week this year. Economist
Intelligence revenue decreased by 3% at actual exchange rates but
increased by 1% at constant currency. EIU subscription revenues
increased strongly and were partially offset by a reduction in
consulting revenue for Clearstate. At Economist Impact, revenue
was down 16% due to challenging market conditions which affected
advertising and research sales.

The shareholders’ deficit on the Group’s balance sheet decreasedby £7.5m in the year to £68.5m. The reduction in net liabilities is due
to retained profits generated in the year offset by the payment ofdividends and other movements through the statement ofcomprehensive income.

Operating profit
Operating profit of £47.4m was 12% higher than the prior year and
14% higher at constant currency. Operating expenses declined,
mainly in Economist Impact Partnerships given the reduction inrevenue from that business, in the finance function in contact
centres and because of lower property costs this year. A return tomore stable sterling to US dollar exchange rates this year, following
last year’s volatility, resulted in a reduced foreign exchange charge.
Marketing costs increased, principally in respect of digital
campaigns and brand spend for The Economist, while technology
costs also increased.

Finance income and expense
Finance expense decreased by £1.0m as borrowings were lower
and benefited from an interest rate cap in the first half. Financeincome was £0.3m lower as there was a gain on sale of an interest
rate hedge of £0.6m reported within finance income last year.

Pensions
The Group’s defined-benefit pension scheme accounting valuation
at the year-end was a surplus of £11.5m compared with a surplusof £13.6m last year. Scheme asset values decreased by £3.2m
while scheme liabilities were £1.0m lower. The pension accounting
standard (IAS 19) only permits recognition of a surplus when thesponsor is entitled to a refund from the scheme. As this is not thecase, a liability of £6.2m (2023: £8.8m) has been recognised on
the balance sheet which represents the net present value ofcommitments made by the company to fund the scheme toachieve a self-sufficiency basis as established at the last
actuarial valuation date.
The most recent actuarial valuation of the UK defined-benefit
pension scheme was undertaken as at January 1st 2021, which
determined a deficit on a funding basis of £50m. A more recent
actuarial valuation, as at January 1st 2024, is currently under way.

Dividend
Reflecting the Group’s financial performance during the year, theBoard is proposing a final dividend of 120.0p per share, taking thefull-year dividend to 160.0p per share, which represents dividend
cover of 1.1 times and an annual yield of 5.1% on the year-end
indicative share price of £31.50.
Dividends for 2023 were 120.0p per share.

Taxation

Financing

The taxation charge for the year was £11.4m (2023: £8.5m).
The effective rate of taxation for the year increased from 21.3%
last year to 25.1% because the UK corporate tax rate increased
from 19% to 25% from April 2023.

The Group has committed borrowing facilities of £80m via
a syndicated multi-currency revolving credit facility whichmatures in October 2027. During this financial year the Group
exercised its option to extend the facility by one year. Cashflow
is seasonally strong during the final quarter of the year, so thefacility was undrawn at year-end.

Profit after tax and earnings per share
Profit after tax increased by £2.9m to £34.1m. Basic earnings per
share were 171.6p, compared with 157.0p last year.

Net debt at the end of the year was £5.4m (2023: £18.2m). Excluding
lease liabilities, the Group had net cash of £24.8m at the year-end(2023: £17.6m). There were no bank borrowings at year-end (2023:£16.4m) and cash amounted to £24.8m (2023: £34.0m).

The Economist Group annual report and accounts 2024

53

Financial review

Foreign exchange
The main currency exposure of business transactions relates to
US dollar receipts from US dollar-denominated sales. The foreignexchange risk on this and other smaller currency exposures ismanaged through the use of forward foreign-exchange contracts.
This year, the US dollar averaged $1.26 against sterling (2023: $1.21)
and closed at $1.26 (2023: $1.24). The weaker average dollar has
decreased revenue and operating profit on translation over the prioryear by £8.6m and £0.7m respectively. Realised and unrealised
gains from currency derivatives and translation of the balance sheet
were £0.9m (2023: losses of £5.3m) and are reported in central
costs within the segmental information on page 96.

Cashflow
There was a cash inflow of £7.7m before debt financing during theyear, compared with a £5.8m inflow last year. Operating cashflowof £61.9m was £10.6m higher than reported last year, reflecting
the higher profitability and lower trade receivables.

Going concern
In order to assess the Group’s ability to operate on a going-concern
basis, the directors have considered the future trading prospectsof the Group’s businesses and the available financing facilities.
Financial projections including profit, cash, debt and balance-sheet
commitments have been prepared covering short-, medium- andlonger-term periods and reviewed to ensure the Group has sufficientliquidity and available financing facilities in place.
As at March 31st 2024 the Group had £24.8m of cash and £80.0m
of undrawn credit facilities.
Based on these cashflow projections, available facilities andcovenants in place, the Board has concluded that it is appropriate
to prepare the financial statements on a going-concern basis.
Marcus Roy
Group chief financial officer
June 10th 2024

54

The Economist Group annual report and accounts 2024

Section 172(1) statement
Under s172 of the Companies Act 2006, as directors
we must act in a way which we believe, in goodfaith, would be most likely to promote the successof the company for the benefit of our shareholders
as a whole. In doing so, our duty is to have regard(among other matters) to:• The likely consequences of any decision in thelong term• The interests of our employees• The need to foster relationships with suppliers,
customers and others• The impact of our operations on the community
and the environment• The importance of maintaining our reputation
for high standards of business conduct• The need to act fairly as between shareholdersof the company.
Our report on pages 70-73, which should be readin conjunction with the strategic and governancereports, sets out how the directors comply with therequirements of Section 172 of the Companies Act
2006 and how these requirements have impacted
the Board’s decision-making throughout 2024.
When the Board takes decisions, it will always
have in mind the views and interests of relevant
stakeholders, which will sometimes be very
different, and the need to balance these as a partof reaching a consensus in the long-term interestsof the Group and its stakeholders; and these will
be represented in Board papers and presentations
prepared by the management team, as well as
in Board discussions. The Board recognises
implicitly that the interests of our stakeholders,and engaging with them, is part and parcel ofensuring the long-term success of the Group.

Risk

The Economist Group’s leadership team and audit
and risk committee ensure that inherent and emerging
risks are identified and managed appropriately andin a timely manner.
Day-to-day management of risk is the responsibility of ourleadership team, overseen by the Group chief executive. Certain
categories of risk are overseen by specialists: for example, the chief
technology officer oversees information-security risk, the chief legal
officer oversees legal risk and data privacy, the chief financial
officer oversees financial risk, and the head of ESG and the SVP
sustainability oversee environmental and climate risk. They present
regular reports to the audit and risk committee. Our risk-governanceprocess is also discussed on pages 74-75.

S T R AT E G I C R E P O R T

Monitoring andmanaging our risk.

Our internal-audit function is outsourced to PwC, which enables
access to broader and independent subject-matter expertise andallows efficient resource allocation.
The internal-audit plan agreed to by the audit and risk committee
is driven by the Group’s organisational objectives and priorities, andconsiders the risks that may prevent the Group from meeting thoseobjectives. In developing the internal-audit plan, the internal auditor
considers the audit universe: areas of the business subject toregulation; the risks and control environment associated with eacharea included in the audit universe; and the most significant risks
faced by the organisation. Recent audits have looked at theeffectiveness of our financial-control environment.

The Group maintains a risk register, compiled using individual
business-area risk registers, which describes strategic, operationaland external risks as well as actions taken to mitigate them. Thisis formally updated twice a year and is reviewed by the audit andrisk committee. Key risks are also reported to and discussed by
the Board.
We disclose the risks and opportunities of different climate
scenarios on all aspects of our business in line with therecommendations of the Task Force on Climate-related Financial
Disclosures on pages 48-51.

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55

Risk

Our key risks and how we mitigate them
Risk

Description

Mitigation

Consumer demand forpremium news

Wider availability of free, online news and journalism
may limit the Group’s ability to grow subscription
volumes and revenues.

Our digital-product offer is constantly evolving to appeal tocustomers in new demographics and markets. We monitor
and analyse data relating to web traffic, marketing
effectiveness and customer engagement.

Artificial intelligence

Generative AI technologies using our content without
permission may impact our intellectual property.
AI tools may result in a reduction in search traffic
to our websites.

We have established a working group focused on the risks
and opportunities in this area. We closely monitor legal andregulatory developments, and protect our IP throughappropriate legal frameworks.

Data-privacy complianceNew and evolving legislative and regulatory
requirements in respect of data privacy by key
technology suppliers create complex compliancedemands to ensure user and employee personal data
are used and protected appropriately, and may affectcertain revenue streams.

Our specialist data-privacy team monitors local andregulatory developments and briefs management regularly
to help shape decision-making.

Availability of businesscritical applications

Certain applications are based on old technology
which, if compromised, could affect our ability todeliver business-critical services.

We have upgraded key editorial and product platforms andtheir supporting infrastructure, and have plans in place forremaining legacy infrastructure to be replaced or upgraded.
Recovery and resilience capabilities in the event of failures
are managed and monitored by an internal IT working group.

Safety of colleagues

The Economist is a high-profile publicationand our colleagues travel to high-risk zones.
There are high-profile attendees at our events.

Training is provided to journalists travelling to high-risk
locations, and we monitor colleagues in such locations
closely. Local government rules and health restrictions
are followed, including restrictions on travel.

Phasing out of online
third-party identifiers

Growing restrictions on the use of third-party
identifiers by online platforms and regulators could
impact the effectiveness of advertising.

We use marketing effectiveness measurement techniquesthat do not rely on cookies and invest in first-party-datacollection to optimise advertising reach.

Cyber-security

A cyber-attack could jeopardise our applications,access customer information or product data,or compromise journalistic accuracy.

We operate a comprehensive cyber-security programmealigned to industry standards. This includes employing bestin-class detection and monitoring systems and establishinga vulnerability-management programme. We test oursystems with regular penetration testing, and our colleagues
through targeted phishing exercises and training.

Economic uncertainties
in our core markets

Lower growth rates and inflationary pressures indeveloped economies in which the Group operates
may affect business and consumer confidence,
resulting in lower demand for the Group’s products
and services.

We rigorously monitor our sales pipeline in each region andconduct scenario-planning, including mitigation planning in
response to potential revenue risks.

Operating restrictions
in certain countries

Restrictions on overseas-based media
organisations could limit our ability to operate.

We work with local advisers and provide our staff with clear
operating guidelines. We have business-continuity plans inplace in case of disruptions. Activities and product launches
are subject to legal review.

Strategic

Operational

External

By order of the Board
Oscar GrutChief legal officer, Group company secretary and head of ESG
June 10th 2024

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G OV E R N A N C E R E P O R T

Governance report
In this section
58

Introduction from the chair

59

Trustees, Board and leadership team

64

Corporate governance66– The Wates Principles

70– Stakeholder engagement74– The Board and committees

76

– Directors’ report on remuneration

78– Directors’ report80

– Statement of directors’ responsibilities

Rigour.
Clarity.
Independence.

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57

Introduction from the chair

Providing clear, transparent insight is at the heart of what
we do as a business—and it should always be our goal in
how we conduct our corporate governance, and how wereport to shareholders and other stakeholders. Our duty
as a Board is to support The Economist Group throughrobust governance that reflects our values and furthers
our purpose: the pursuit of progress.

Our aim is for all our communications with shareholders and otherstakeholders to improve each year—including our annual report.
This year, we have again updated our climate-related financial-risk
disclosures in line with the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD), as well as ourmateriality assessment. As last year, we have published a separate
sustainability report, providing an in-depth account of our approach
to, and progress in, social and environmental sustainability, including
our science-based targets for emissions reduction by 2030; it isavailable on our website, www.economistgroup.com.
As in previous years, this governance report describes how wecomply with the most relevant code of corporate governancepractice—the Wates Corporate Governance Principles for Large
Private Companies—and sets out our guiding principles and ourunique governance model.
Paul Deighton
Chair

Governance structure
Our governance structure at The Economist Group is unusualin that we have a group of Trustees who are separate from andindependent of the board of directors, and of the shareholders.
That’s because The Economist Group’s success is based on
the reputation of The Economist for honesty, integrity andindependence—so its journalism must remain free from thecommercial pressures of the Group.

The Trustees’ principal role is to safeguard those qualities, which
includes ensuring the continued independence of ownershipof the company and the editorial independence of our journalism,
while the Board’s role is a more traditional one of overseeing theGroup’s long-term success. The table below sets out how thisworks in practice, with the respective roles and responsibilitiesof the Trustees, the Board and the leadership team.

Trustees

Board

Leadership teamRole
To ensure the continued independence of ownershipof the company and the editorial independence of
The Economist.

Role
To promote the long-term success of
The Economist and the company as a whole.
The Board determines the long-term strategyof the Group, with the added responsibilityof preserving its unique independent
editorial voice.

Role
To carry out the strategy approved by
the Board, which delegates authority for
day-to-day management to these executives(see pages 62-63). The team meets every two
weeks and is led by the chief executive.

Specific rights
The Trustees have rights attaching to their sharesto fulfil their role, which are set out in the company’s
articles of association. These are to:• Approve the appointments of the editor-in-chiefof The Economist and the chair of the Board.
• Approve transfers of “A” special and“B” special shares.
• Approve changes to fundamental provisions of thecompany’s articles of association.

How the Board is appointed
The Board may have up to 13 directors, sevenof whom may be appointed by the holders of
the “A” special shares (who are all individuals)
and six by the holder of the “B” special shares(Exor). There are currently nine directors(see pages 60-61).
Non-executive Board appointments arereviewed every three years (six years in thecase of the chair).

How the leadership team is appointed
The chief executive is appointed by the Board.
The editor-in-chief is proposed by the Boardand appointed by the Trustees. The othermembers of the leadership team are appointed
by the chief executive, in consultation with theBoard and, where appropriate, its committees.

Restrictions
Apart from these rights, the Trustees have no others.
They do not have the right to vote on most othermatters, receive dividends or have any othereconomic interest in the company.
How Trustees are appointed
There are four Trustees (see page 59). When there
is a vacancy, the remaining Trustees appoint their
new colleague.
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Trustees, Board and leadership teamBaroness Bottomley of Nettlestone
PC, DLG OV E R N A N C E R E P O R T

Trustees

Dame Alison Carnwath

Tim Clark

Lord O’Donnell
CB, KCB, GCB, FBA

Baroness Bottomley of Nettlestone PC, DL
Appointed: October 2005

Tim Clark
Appointed: December 2009

Chairs Odgers Berndtson Board Practice. Member of theHouse of Commons (1984-2005). Environment minister
in Margaret Thatcher’s government. Served in John Major’s
cabinet as secretary of state for health (1992-95), andthen as secretary of state for national heritage (1995-97).
Appointed to the House of Lords in 2005. Non-executive
director of AkzoNobel (2000-12), Bupa (2006-12)
and Smith & Nephew (2012-21). Board member of theInternational Chamber of Commerce UK (2006-21).
Member of the International Advisory Council, Chugai
Pharmaceutical Co (2012-20). Chancellor of the Universityof Hull (2006-22). LSE emeritus governor and memberof the Court of Governors (1985-2016).

A former senior partner of Slaughter and May and a founderof BCKR, a company that assists lawyers to develop theircareers through taking on board and other roles. Chair of theboard of HighTide Theatre and a senior adviser to G3 andHudson Sandler. A member of the Council of RADA and of theadvisory board of the Centre for European Reform. Formerly
chair of the boards of WaterAid and the Royal Air Squadron,and a member of the boards of the National Theatre and
Big Yellow Group. He was also senior independent directorof Big Yellow Group, and a member of the development
committee of the National Gallery, the audit committee of the
Wellcome Trust, the board of senior advisers of Chatham House,
the international advisory board of Uria Menendez and theInternational Chamber of Commerce UK Governing Body.

Dame Alison Carnwath
Appointed: January 2019

Lord O’Donnell CB, KCB, GCB, FBA
Appointed: October 2012

A senior adviser at Evercore. Chair of the audit committeeof BASF, non-executive director and chair of the audit
committee of EG Group, non-executive director of Asda,
chair of the audit committee of Zurich Insurance Group,
an independent director of PACCAR and of CICAP(Coller Capital) and chair of the Livingbridge strategic
advisory board. In the not-for-profit sector, she is a memberof the advisory council of the St George’s Society of New
York. Engages in a number of mentoring assignments in the
UK and overseas. Has been involved with Livingbridge
Private Equity (formerly Isis Private Equity) for 17 years,
where she was previously chair of the investment committee
and of the management board. Formerly a senior adviser
at Lexicon, a managing director of Donaldson Lufkin andJenrette, and a partner in the Phoenix Partnership(a corporate advisory and private-equity business).

Chair of Frontier Economics, strategic adviser to TD Bank,
executive director and strategic adviser to Brookfield AssetManagement, president of the Council of the Institute for
Fiscal Studies, chair of the board of trustees for Pro Bono
Economics, and visiting professor at LSE and UCL.
He was cabinet secretary and head of the British civil
service (2005-11). In 2010 he oversaw the introduction of
the first coalition government since the second world war.
Permanent secretary of the Treasury (2002-05) and servedon the IMF and World Bank boards. Studied economics
at Warwick University and Nuffield College, Oxford, thenlectured at Glasgow University. Appointed to the House ofLords in 2012, sitting as a crossbencher (ie, not affiliated toany political party). Honorary fellow of the British Academy
and fellow of the Academy of Social Sciences.

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59

Trustees, Board and leadership teamBoard
The Board currently comprises seven non-executive
directors and two executive directors. Lord Deighton,
Georgina Cadbury, Eli Goldstein, Zanny Minton Beddoes
and Mustafa Suleyman were appointed by the “A” special
shareholders. The “B” special shareholder, Exor,
appointed Lara Boro, Vindi Banga, Lady Heywood andDiego Piacentini.

The non-executive directors have a breadth of successfulcommercial and professional experience, and they exercise
independent judgment. Lady Heywood is managing director of Exor,
which, by virtue of its holdings of “B" special and ordinary shares,
owns 43.4% of the issued share capital in the company. Eli Goldstein
was nominated by the Rothschilds, who, through their own andrelated parties’ holdings of “A” special and ordinary shares,
control 26.7% of the issued share capital in the company. Detailsof directors’ interests and, in relation to the executive directors only,
their interests in the employee share ownership trust, are given in
the directors’ report on remuneration on pages 76-77.
The appointments of both the chair of the Board and the editor-inchief of The Economist are subject to Trustee approval (discussed
further on page 58).

Lord Deighton
Non-executive chair

Lara Boro
Chief executive

Zanny Minton Beddoes
Editor-in-chief

Appointed: February 2018, andas non-executive chair in July 2018

Appointed: September 2019

Appointed: February 2015

Commitments: Advisory board memberof MIT Technology Review.

Commitments: Chair of the Marjorie
Deane Financial Journalism Foundation,member of Die Zeit publisher’s advisoryboard, trustee of the Bilderberg
Association UK, board member of
the Clooney Foundation for Justice.

Commitments: Chair of Hakluyt, chair of
Heathrow, director of Block, chair of thegoverning body of King’s College School
Wimbledon.
Previous roles: Leadership oforganisations and projects in private andpublic sectors, partner at Goldman Sachs,
CEO of the London Organising Committeeof the Olympic and Paralympic Games,
commercial secretary to the Treasury.

Previous roles: Chief executive ofInforma Intelligence. Before that,held senior positions at Ascential(formerly EMAP), CPA Global and the
Financial Times.

Committees:– Remuneration (chair)– Nomination (chair)

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The Economist Group annual report and accounts 2024

Previous roles: Joined The Economist’s
editorial team in 1994.

G OV E R N A N C E R E P O R T

Vindi Banga
Appointed: September 2020
Commitments: Partner at Clayton,
Dubilier & Rice, chair of Marie Curie,
senior independent director of Haleon plc,
chair of UK Government Investments, board
member of the International Chamber ofCommerce UK.
Previous roles: Member of executive board
at Unilever, president of Unilever Asia,
chair and managing director of Hindustan
Unilever. Member of India’s Prime Minister’sCouncil on Trade & Industry and of the boardof governors of the Indian Institute ofManagement Ahmedabad. Non-executive
director of the Confederation of British
Industry and of Thomson Reuters
Corporation. Senior independent director
at GSK and Marks & Spencer, and chair of
the supervisory boards of Mauser Group,
Kalle and Diversey.

Eli Goldstein
Appointed: October 2017
Commitments: Founder and managing
partner of The Radcliff Companies,
director of Chrome Hearts Holdings,
Jet Linx Global, CrossCountry Mortgage,
WatchBox, Ojos Locos Sports Cantina,
ZBS Partners and Boundary Rail.

Georgina Cadbury
Appointed: January 2023
Commitments: Co-founder partnerof Platypus Partners, director of the
LJC Fund, a benevolent company.

Previous roles: Chief investment officer
and partner of E.L. Rothschild, investmentbanker at Bear, Stearns & Co.

Previous roles: Director of fundraisingand investor relations at Palmer Capital(subsidiary of Oakley Capital).

Committees:– Audit and risk
– Nomination

Committees:– Audit and risk

Committees:– Remuneration

Diego Piacentini
Appointed: November 2019

Lady Heywood (Suzanne)
Appointed: October 2015
Commitments: Chief operating officer
of Exor; chair of CNH Industrial, Iveco
Group and Shang Xia; director of Christian
Louboutin and Clarivate; member of UK
Investment Council.
Previous roles: Civil servant in
HM Treasury, senior partner (director)
at McKinsey & Company.
Committees:– Audit and risk (chair)– Remuneration– Nomination– Technology investment

Commitments: Chair of the board of
Apolitical.co; board member of Endeavor
Italy, Institute for Health Metrics and
Evaluation (IHME), Voi Technology and
DoorDash; mentor at Endeavor Global;
adviser at Exor Ventures, KKR and several
US and EU startups.
Previous roles: Italian government’s highcommissioner for digital transformation,
senior vice-president of international
consumer business at Amazon, generalmanager of EMEA at Apple.

Mustafa Suleyman
Appointed: June 2019
Commitments: CEO, Microsoft AI.
Previous roles: Co-founder and CEO of
Inflection AI. Co-founder of DeepMind.
Committees:– Technology investment

Committees:– Technology investment

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61

Trustees, Board and leadership team

Leadership teamAlongside Lara Boro andZanny Minton Beddoes, ourleadership team comprises:

Gareth Bridge
Transformation director
Gareth has responsibility for strategic
projects and transformation initiatives
across the Group.
Joined the Group in October 2019.
Previously held senior roles at RBS, TUI,
Reed Elsevier, UBM and Informa.
Kristin Anderson
Chief people officer
Kristin leads the Group’s HR, talent,
leadership, learning, culture, and diversity,
equity and inclusion initiatives.
Joined the Group in July 2024. Previously
served as chief people and culture officer
at World Vision International, andheld senior roles at Citrix and Microsoft.

Freddie Cornes
Interim managing director,
The Economist business
Freddie joined in October 2022 as financedirector and currently serves as interim
managing director of The Economist
business. Prior to joining The Economist
Group, Freddie was the managing directorof Yopa, the proptech subsidiary of Daily Mailand General Trust (DMGT). Previously heheld senior finance roles at DMG Media, themedia arm of DMGT, various private-equity
backed businesses and Sky. He qualified
as a chartered accountant with Deloitte.

Jennifer Devereux
Director of corporate development
Jennifer leads corporate development
strategy across the Group.
Joined the Group in November 2022. Jennifer
has held senior in-house, private-equity andinvestment-banking roles in the media, data/
information and technology sectors.
Most recently she served as corporate
development director at Informa.
Oscar GrutChief legal officer, Group company
secretary, head of ESG
Oscar leads the legal and business operations
team, as well as having responsibility for ESG
reporting and the company’s Sustainability
network, whose mission is to drive sustainable
practices and reduce emissions acrossthe organisation.

Michael Fleshman
Group chief technology officer
Michael is responsible for leading
the Group’s technology team, withresponsibility for the Group’s technology
platforms and the tools and applications
required for our editorial, data andbusiness teams to create and distributebest-in-class content.
Joined the Group in May 2022. Previous
roles include SVP consumer digitaltechnology at BBC Worldwide, andchief technology officer at the Financial
Times, AOL France and Nickelodeon
Online/MTV Networks.

62

Liz Goulding
Chief product officer

He is also the executive sponsor of the
DisAbility Network, the Group's affinity
network that fosters an inclusive environmentthat supports colleagues with visible andinvisible disabilities, long-term healthconditions, and carers.

Liz leads the strategy, design and developmentof the customer experience across the digitalproduct portfolio. Joined the Group in May
2022. Has held senior product positions
at Discovery and the London Olympics.

Joined the Group in 1998 from Linklaters.
Founded The Economist’s digital-editions
business, launching its first mobile apps,
and served as managing director for its
digital operations.

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G OV E R N A N C E R E P O R T

Daragh Kelly
Chief data officer

Ian Hemming
Managing director, Economist
Impact Events
Ian leads the Group’s events business,
which is part of Economist Impact.
Joined the Group in July 2019. Has 30 years’
experience in the commercial events andB2B media industry, serving as CEO of the
TMT division of Informa for 16 years andlatterly as a media adviser to privateequity groups and events companies.
Also non-executive director of Landmark
Group Holdings.

Charlotte Howard
Executive editor, The Economist
Charlotte joined The Economist in 2004.
She is the newspaper’s New York bureau
chief and co-host of the Checks andBalance podcast. She previously served
as The Economist’s US business editor.
In other beats she has covered theenergy sector and climate policy,
consumer goods and retail, the global
healthcare industry, and politics andpolicy in America’s Midwest.

Claudia Malley
President/managing director,
Economist Impact Partnerships
Claudia leads the global partnerships
business of Economist Impact, which
combines policy research and insights,
multimedia content and advertising.
Joined the Group in October 2020.
Claudia previously led the global
corporate partnership business at
National Geographic, and served asworldwide publisher at Runner’s World.
She began her career in public television,working on corporate partnerships.
Claudia is the executive sponsor of Minds
of All Kinds, the Group’s affinity network
whose mission is to bring awareness tomental health and well-being.

Daragh joined the Group in November
2023 and leads the data, research andinsight team. Previously led the data,
analytics and AI function at Burberry,and he has held senior data and analytics
positions at Sky, Experian and Orange.
He began his career as an economist with
the Irish government. Daragh is passionate
about education policy and social mobility
and serves as a non-executive director
with UCAS Media.

Leon Saunders Calvert
President/managing director,
Economist Intelligence
Leon is responsible for leading the
Economist Intelligence business, which
incorporates EIU, Clearstate and the
Corporate Network.

Marcus Roy
Group chief financial officer
Marcus is responsible for the financial
affairs of the Group and leads the
Economist Education business.
Joined the Group in February 2021.
Marcus brings 20 years’ experiencein subscription-based and consumer
businesses. Previously held seniorfinance roles in the UK and US with
Dixons Carphone and Associated British
Foods, and qualified as a charteredaccountant with Deloitte.

Leon joined in April 2024 and was formerly
chief product officer at ESG Book, andpreviously a group director at The London
Stock Exchange Group. He has also run
various business lines at Refinitiv andThomson Reuters.

Departures in the year

Bob Cohn resigned in February 2024.
Formerly president/managing director,
The Economist business.

Ramsey Hashem resigned in October 2023.
Formerly president/managing director,
Economist Intelligence.

Lauren Hood stepped down from her role asinterim chief talent officer in July 2023 andis now head of people services.
The Economist Group annual report and accounts 2024

63

Corporate governance

Safeguarding our values.
Earning trust.
Sustaining our growth.

Trust is being eroded, and information weaponised.
In a polarising news culture, the integrity and independenceof The Economist’s journalism are more important than ever.
Our governance structure is designed to preserve thatindependence while ensuring the commercial sustainability
and success of the business as a whole. That means
applying high standards of corporate governance that areappropriate for our size, our profile and the specific natureof our business. For many years we have published our
guiding principles and explained how we comply with
relevant codes of practice.
We consider the Wates Corporate Governance Principles for Large
Private Companies, published by the Financial Reporting Council(FRC), to be the most relevant code to our business, and we confirm
that we have applied these principles throughout the financial
year ended March 31st 2024.
In this section we describe how we apply the Wates Principles andincorporate the requirements of reporting against Section 172(1) of
the Companies Act 2006. The two overlap somewhat and so, having
set out the Wates Principles, we go on to illustrate their application
by describing how they apply in the context of our own guiding
principles, along with some examples of what we have done during
the year, and our plans for the year ahead. The strategic reportshows many of these principles in action.

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G OV E R N A N C E R E P O R T

The Economist Group’s guiding principles
Independence in our DNA

The Economist has been published since 1843 to take part“in a severe contest between intelligence, which presses
forward, and an unworthy, timid ignorance obstructing
our progress”.
The Economist Group is editorially independent and free ofpartisan bias, state control or outside influence of any kind.
Today, this autonomy is among our most fiercely upheld
attributes. Since 1843, The Economist’s editor-in-chief has
been the guardian of our editorial values.

Guiding principles
The Group operates in a clear and ethical context, and theBoard has approved a set of guiding principles, which are
as follows.
We value our customers
We offer insight, analysis and services that are valued byour customers.
We are committed to independence, integrity and quality
Our commitment to independence, integrity and deliveringhigh quality in everything we do governs our relationships
with readers, audiences and clients, shareholders, colleagues,
suppliers and the community at large.
We believe in conducting business with common decency
We are opposed to bribery and do not engage in corrupt
practices. We abide by strict guidelines governing theacceptance of gifts and the disclosure of potential conflictsof interest.
We are opposed to slavery and human trafficking
We are opposed to slavery and human trafficking, both in ourbusiness and in our supply chain. See our Modern Slavery
Statement at www.economistgroup.com.
We abide by local laws and regulations
As an international company, we conduct business in manydifferent markets around the world. In the countries in which
we operate, we abide by local laws and regulations.
We follow a robust tax-governance and riskmanagement policy
We follow clear principles in the conduct of our tax affairs andhow we engage with the UK and other tax authorities. See ourcurrent UK tax strategy and tax- and risk-management policy
at www.economistgroup.com.

We believe in charitable giving
We make an active contribution to charities by charitablegiving. We encourage our colleagues to participate incharitable and community activities and we enable them totake time off for this purpose. We match employee donationsof time and money to charities.
We are committed to climate-change management
We respect environmental standards and comply with relevant
local laws. We take environmental issues seriously. See ourreport on climate and environment on pages 44-47, our TCFD
report on pages 48-51, and our separate sustainability reportat www.economistgroup.com.
We value our colleagues and treat each other fairly
The Group is committed to equality of opportunity in all
employment practices and policies. We do not discriminate
against employees or job applicants on the grounds of age,sex, sexual orientation, gender reassignment, marital status,
race, colour, religion, national origin, maternity, pregnancy
or disability. We support colleagues who through disability
or illness are unable to perform their duties, by adapting thework environment and hours of work to suit them as far aspracticable. We provide employee-assistance programmes
and access to mental-health facilities.
We have a consultative culture
We recognise that it is essential to keep colleagues informedof the progress of the Group. We provide colleagues withinformation on the Group’s activities and its financial
performance through regular meetings and communication
through our intranet. We have a strong consultative culture,
and we follow legal and regulatory requirements to consult
with colleagues on major issues affecting the company.
We are committed to increasing colleague diversity
We particularly focus on ensuring that we recruit from thewidest possible pool of talent. Data about how our Group iscomposed by gender and ethnicity can be found on page 43.
We are also keen that people feel comfortable and valued
at work, regardless of their background.
We are committed to reducing the gender pay gap
The Group is committed to reducing the gender pay gap
and achieving parity. Our 2023 gender pay gap report was
published in March 2024. While our gender pay gap has, again,
narrowed—it is less than half what it was when we started
reporting it in 2017—we will continue our efforts until the pay
gap no longer exists.

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65

Corporate governance

The Wates Principles
The Economist Group is not bound by any corporate
governance code, although we have always sought tomanage our corporate affairs as closely as possible in linewith prevailing standards of governance. The audit and risk
committee of the Board reviews how the Group has applied
corporate governance under the Wates Principles.

Principle One

Purpose and leadership
The Economist Group’s Board develops and promotes the purposeof the company and ensures that our values, strategy and culturealign with that purpose. Our purpose is to champion progress bydelivering the best journalism, business information, events andmarketing services to our readers and clients. For more on this,please see the strategic report (pages 2-56) and our guiding
principles (page 65).
We operate a hybrid-working model. Non-editorial colleagues
are expected to work in the office at least two days a week,with exceptions for some roles where more days in the office are
required (or fewer, particularly for software engineers). While wekeep this model under review, our experience so far is that hybrid
working has not affected productivity and has had an overall
benefit in terms of colleague satisfaction and recruitment.
As previously reported, Russia’s continuing war on Ukraine has
had some impact on the business, in terms of managing our (albeit
small) workforce and business in the region; and, of course, we are
not alone in seeing the wider impact on the economic environment,along with the pressures of inflation and economic slowdown insome important geographic markets and industries.
We have continued to manage our cost base carefully, investingfor growth where it has the most impact while reducing expenditure
where appropriate.

The Board and its committees exercise oversight of the Group to
ensure it reflects the purpose, values and principles discussed inthis report. The Board receives and discusses regular reports frommanagement on areas including:• Financial and operational performance• Investments• Strategy• Technology• Product developments and new services• Business risks and opportunities• People, including our values, diversity and inclusion efforts,
reducing the gender pay gap, colleague engagement surveys,
and the closely linked topics of fixed and variable remuneration,
benefits, recruitment and retention• Environmental sustainability, where the Group has ambitious goals
in terms of reducing the Group’s greenhouse-gas emissions aswell as other areas where we have an impact on the environment(see pages 44-47 and our separate sustainability report); we havevoluntarily adopted climate-related financial risk disclosures inline with the recommendations of the TCFD (see pages 48-51);
we updated our materiality assessment in 2024, the results ofwhich are reported on page 51; and we obtained our second CDP(formerly Carbon Disclosure Project) score in 2024 (see page 45
and our sustainability report at www.economistgroup.com)• Charitable and other social initiatives (see page 72 and ourseparate sustainability report)• Shareholder value.
The Board has supported and guided the management teamin all these areas during the year and, as ever, pressed forcontinued progress.
The impact of global events on the business is discussed in moredetail in the strategic report on pages 6-37; and our reporting onthese events is highlighted on pages 12-19.

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Board composition
Please see the governance structure of the Board and the detailsof directors set out on pages 58-61. The chair leads the Board andis responsible for its overall effectiveness, promoting open debate
and facilitating constructive discussion. The company’s constitution
preserves the company’s corporate and editorial independence
through various safeguards, including the trust shares that are held
by four Trustees, whose key rights and responsibilities are describedon page 58. The idiosyncratic nature of the company’s constitution,
including the governance of appointments to the Board, has been
in existence in some form since the early 20th century. Its purpose
was—and continues to be—to ensure that The Economist Group(and The Economist newspaper in particular) remains independent
from the control of another corporate entity or any single
shareholder. See page 75 for details of the nomination committee.

• Our sustainability strategy, including working towards ourambitious goals to reduce our greenhouse-gas emissions by
43% by 2030 against a 2020 baseline, which the Board keeps
under review. In addition, the Board resolved to continue reportingin line with the recommendations of the TCFD on a voluntary basis,
to obtain a second CDP score, and to publish—in digital format
only—a second sustainability report (see pages 48-51 and oursustainability report, which can be found atwww.economistgroup.com).
• Supporting the Group’s work on evaluating the risks andopportunities to the business of AI.
• Our colleagues. This year, the Board was particularly focusedon strengthening our HR capabilities under the leadership of our
new chief people officer, Kristin Anderson, who has defined a new
global operating model and is driving digital transformation of
the people function (see more on pages 42-43 and in oursustainability report).

The Board takes its own diversity seriously. Four of its nine
members are women (including the chief executive and theeditor-in-chief), and three are from minority-ethnic backgrounds,
as defined by the FCA’s Listing Rules (which do not apply to theGroup). The remuneration committee has approved diversity andsustainability targets for senior management as part of their
incentive plans.

• Through the audit and risk committee, continuing to engage
constructively with the trustee of the UK defined-benefit pension
plan, which is closed to new entrants and future accrual.

Principle Three• Maintaining our policy of lifting our paywall in both Ukraine andRussia, given the importance that we attach to giving ouraudiences access to fact-based, impartial and independent
reporting. As we first reported in 2023, when Russia illegally
invaded Ukraine we ceased trading with sanctioned individuals
and entities and stopped selling subscriptions in Russia.

Director responsibility
The Board, chaired by Lord Deighton, met for regular business six
times in the 12 months to March 31st 2024. Five of these meetings
were held in London, and one—given the size of our business in the
US—in New York. The Board also convenes at other times on an
ad hoc basis or in committee when necessary. The Board receives
regular reports and presentations on a wide range of topics fromthe leadership team and other colleagues from across the Group’s
operations. In its six regular meetings this financial year, as well as
in meetings of its committees, the Board’s priorities included:• Our hybrid-working policy, introduced in 2023 based on colleague
feedback. This policy has been a success, although we continue
to monitor it to ensure it is suitable for all our colleagues and thebusiness. At the same time, we continued to right-size and equip
our offices around the world to best serve colleagues as we adapt
to new working norms.

• Continuing a policy of paying an appropriate level of dividends,
bearing in mind the needs of the business, having successfully
maintained a strong balance sheet (see page 78).

• Completing the Group’s digital transformation, combined withstrong governance and close scrutiny of the performance ofinvestment in this area. Major digital projects include investing incyber-security, improving the Economist app, the introduction of
Economist Podcasts+, new digital content management systems
for The Economist and the EIU, AI-related developments and anew, central sales and marketing platform for our B2B businesses.

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67

G OV E R N A N C E R E P O R T

Principle Two

Corporate governance The Wates Principles

The Board’s responsibilities

Principle Four

• Overall direction and strategy of the Group

Opportunity and risk

• Securing the best performance from the Group’s assets

In promoting the long-term success of the Group, the Board
is responsible for the Group’s overall appetite for risk and looks foropportunities for growth while mitigating risk. The chief executive
and other members of the leadership team regularly highlight short-,
medium- and long-term strategic and operational opportunities intheir reports.

• Determining matters specifically reserved for the Board
in a formal schedule (which only the Board may change),
including significant acquisitions and disposals, significant
capital expenditure and major office leases• Approving the Group’s strategy, annual budgets and accounts• Reviewing key risks• Reviewing management’s activities—for example, its deliveryof the Board-approved strategy for the business, specificactions taken under a formal schedule of delegated authorities,
progress on diversity and inclusion, and ESG goals• Ensuring a clear and transparent system of governanceNote: the company’s articles of association require the approvalof the Trustees for some actions (see page 58).
The Board conducts an annual self-evaluation, led by the chair
and the company secretary. The areas covered by the most recent
evaluation included:• Board diversity• The composition, skills and experience of the Board• Attendance at Board meetings• The quality and quantity of information provided to the Boardand of Board discussions• The duration and frequency of Board meetings• Attention to long-term strategy, key talent, succession,interactions with top management, ESG, and risk assessmentand management• Board insight and understanding of the Group’s businesses andits markets, products, shareholder communications andshareholder value• How stakeholders are considered in its decision-making, including
shareholders, colleagues, clients, readers and suppliers• The committee structure, the work of the committees and thedelegation of powers by the Board• A free-form element giving Board members the opportunity tohighlight areas where they felt improvements could be made.
Key features of the Board• Induction process for new directors.
• Board-approved delineation of the roles of the chair and thechief executive.
• Terms of reference for each of the Board’s committees(see more on the Board’s committees on pages 74-75).

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We look particularly at long-term opportunities during the annual
strategy-review process. As part of looking at opportunities, theleadership team, along with the audit and risk committee, also
identify and manage risk, and highlight key risks twice a year to
the Board.
The leadership team is responsible for the day-to-day managementof risk, overseen by the chief executive. Certain risks are overseen
by technical specialists—for example, the chief technology officer
oversees information security, the chief legal officer oversees legal
and data-privacy risk, the chief financial officer oversees financial
risk, and the head of ESG and the SVP sustainability oversee
environmental and climate risk. Their reports are presented to,and discussed by, the audit and risk committee and the Board ona regular basis.
Our risk register lists strategic, operational and external risks andhow we mitigate them. We update it formally twice a year and it isreviewed by the audit and risk committee, which then reports on key
risks to the Board (see page 56 for our table of key risks and how wemitigate them, pages 48-51 for our TCFD report on climate-relatedrisks and opportunities, and pages 74-75 on the work of the audit
and risk committee).

Principle Six

Remuneration

Stakeholder relationships
and engagement

We aim to build a compelling compensation offering to attract andretain high-calibre talent and to reward excellence—and, in doing
so, earn the loyalty of our colleagues and their commitment to our
long-term strategic goals.
Fairness of reward decisions, in line with colleagues’ roles andcontributions to the business, is a fundamental principle of The
Economist Group, and audits are carried out to ensure equitable
treatment across all colleague groups. We aim to align individualsalary levels to the local, external marketplace for equivalent roles
within similar organisations, based on factors such as industry,
size and location.
Rather than focus on a single point within a market range as thetarget salary, such as the median, we instead look at zones within
the range. This provides flexibility to determine compensationlevels based on multiple factors, as opposed to focusing ona single reference point. These include role-based factors, suchas the scarcity of skills, the criticality of the role to the organisation,other compensation elements (such as bonus and commission)and market forces influencing attraction and retention; andindividual factors, such as personal performance, experienceand competence.
We also aim to reward colleagues for personal excellence and thehigh performance of the business through variable pay such as
bonuses and commissions.
In setting the remuneration policy, the remuneration committee
and the Board are mindful of the views of shareholders and otherstakeholders. We link a significant proportion of remuneration tocorporate and individual performance in a way that is designed
to promote the long-term success of the company.
During the year, the remuneration committee undertook a detailed
exercise to benchmark expenditure on total remuneration and its
component parts, such as fixed pay and long- and short-term
incentives, against the media sector. The committee alsobenchmarked leadership-team compensation packages.
For more details, including on the role and responsibilities of the
remuneration committee and our remuneration policies, see thedirectors’ report on remuneration on pages 76-77.

G OV E R N A N C E R E P O R T

Principle Five

We rely on good relationships with our stakeholders—from ourreaders and clients to our colleagues, pensioners, shareholders,
suppliers and communities—in order to deliver excellence ineverything that we do.
Once again, thanks to the hard work, diligence and skill of ourcolleagues we have been able to deliver high-quality products
and services to our readers and clients and to post commendable
results. As ever, we are deeply grateful to them, as well as our loyal
and supportive shareholders, clients, suppliers and audiences.
The Board continued its support for the Group’s sustainability-related
initiatives. We continued our drive to reduce the Group’s carbon
emissions by 25% by 2025, which we have now surpassed, andupgraded our emissions-reduction target to 2030—aligned with theaim of the Paris agreement to limit global warming from pre-industrial
levels to 1.5°C. This new target is validated by the Science Based
Targets initiative (SBTi), a coalition for corporate climate action.
We carried out projects to assess the impacts of Group operations
on the climate and the environment more generally, and madecontributions to a number of carbon-reduction and avoidance
initiatives. Having resolved to adopt, on a voluntary basis, theclimate-related disclosures recommended by the TCFD, the Board
also supported our second CDP (formerly the Carbon Disclosure
Project) rating (see page 45). Our climate strategy and data are
discussed in depth on pages 45-47 and in our separate sustainability
report, which can be found at www.economistgroup.com; our TCFD
report can be found on pages 48-51.
We continued, primarily through the audit and risk committee,
our constructive dialogue with the trustee of the UK defined-benefit
pension plan, including the investment strategy for the plan’s assets.
The trustee represents an important group of stakeholders: current
and former colleagues who are members of the plan.
We have in place numerous policies to protect our various
stakeholders, including data-privacy and information-security
policies, editorial codes, a modern-slavery statement, an antibribery policy, and a gifts and entertainment policy. We also
introduced new codes of ethics for colleagues and suppliers.
We discuss our relationships with stakeholders in more detail in thenext section, by reference to the directors’ duty under Section 172
of the Companies Act 2006.

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69

Corporate governance

Stakeholder engagement
Our report below, which should be read in conjunction with our report on
the Wates Principles on pages 66-69 and more generally the strategic andgovernance reports, sets out how the directors comply with the requirementsof Section 172 of the Companies Act 2006 (referenced in our Section 172(1)statement on page 54) and how the Board, in its decision-making throughout
the year, considered stakeholders’ interests.

As explained in the strategic report, the past year was marked bysome momentous events:• The brutal assault by Hamas in Israel, followed by Israel’s invasionof Gaza and the increasing tension in the region, Russia’s war on
Ukraine, and increasing political instability around the world have
had marked effects in most regions where we operate (see pages
12-13 and below)• More droughts, floods and heatwaves around the world• The rapid advances in AI, which promises to be disruptive• Continuing pressures on the cost of living• The energy crisis, inflation and high interest rates in our key
markets continued to affect many parts of the business.
Here we set out how the Board has responded against this backdrop.

Engaging with our shareholders
Our shareholder base is nearly 1,000 strong, ranging fromincreasingly dispersed long-standing family holdings to existing
and former colleagues and their families, as well as other unrelated
individuals and companies.
Exor owns a 43.4% stake in the company, including both ordinary
shares and all the “B” special shares. There are more than 100
holders of the “A” special shares; the holders of the more substantial
parcels of shares include some of the long-standing families andformer editors and CEOs. These include the Rothschilds’ holdings,
which total 26.7% of the company’s issued share capital.
Some of our “A” special, “B” special and ordinary shareholders are
represented on the Board. Currently they include the Rothschilds,
whose nominee, Eli Goldstein, was appointed by the “A” special
shareholders; Exor, through Lady Heywood; and Georgina Cadbury.
In addition, the chair, other directors and members of the leadershipteam regularly speak to individual shareholders. Our AGM has
always been an important opportunity to talk to our shareholders
and, since 2021, the Board has hosted quarterly calls to which allshareholders are invited. These are an opportunity to give
shareholders updates on the Group’s performance, productdevelopments, and editorial and other initiatives. They also provide
a forum for shareholders to offer feedback and ask questions of thechair and senior executives. The feedback from shareholders
continues to be that they greatly value these calls.
The Board recognises the importance of the dividend to mostshareholders. Given the company’s strong performance, the Board
has recommended to shareholders the payment of a final dividendin respect of 2024, in addition to the interim dividend paid during
the year.

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Diversity and inclusion

Members of the leadership team and other colleagues in thebusiness are regularly invited to present and discuss businessmatters with the Board, at Board meetings as well as informal
settings. Once again, we held a Board meeting in New York in
March, with opportunities for colleagues to meet our directors.
Our chief executive, as well as other members of the leadershipteam, present regular updates to colleagues covering a wide rangeof topics, from strategy and business performance to productdevelopment, editorial initiatives, sustainability and diversity. Thesesessions are frank, open discussions and include time for questions
and feedback.

We believe that everyone deserves to be treated fairly andinclusively, and that diversity is good for the business by providing
access to the best talent and to diversity of ideas. The Boardis therefore very supportive of the many diversity and inclusion
initiatives that have been put in place both within the newspaper’s
editorial team and across the business, and on which the Board
receives regular progress reports.

Members of the Board also engage individually with colleagues
in areas where they wish to learn more about the business or feelthey can be of particular help. One area that continues to be of
considerable value to the Group has been some of our Board
members’ experience in technology, AI and e-commerce—inparticular Diego Piacentini and Mustafa Suleyman, who have been
exceptionally generous with the time and advice they have given us,
both in sessions with colleagues and through their participation on
the Board and in our technology investment committee. Georgina
Cadbury was appointed as a designated non-executive director for
workforce engagement, and we look forward to reporting on her
activities in this area next year.
The Group conducts regular surveys—using an employee feedback
platform, Your Voice, as well as through more targeted “pulse”
surveys—the results of which, along with recommended actions
arising, are reported to and discussed with the Board. They areimportant sources of feedback and insight.
Given the favourable colleague feedback about being able tochoose to work remotely at least some of the time, we havecontinued our hybrid-working policy, with most full-timecolleagues expected to attend an office a minimum of two daysa week. Editorial colleagues at The Economist have different
flexible-working arrangements given the nature of their work.
Our colleagues are also able to work from abroad for up to five
weeks a year. Those who wish to be in the office more frequently
are of course welcome.
While this flexibility was introduced primarily for the benefit ofcolleagues, it has also had significant implications for our realestate portfolio, given the reduced space requirements. We havecontinued to move offices as leases come up for review, resulting
in a reduction in lease costs and, just as importantly, providing
the opportunity to improve and adapt our offices to suit flexible,
hybrid-working habits, which has been popular with colleagues.

G OV E R N A N C E R E P O R T

Colleagues

We also have a number of affinity groups, each sponsored bya senior executive:• TEG in Colour, a group for ethnically diverse identities andallies across the Group that aims to create a more inclusive
and equitable workplace for colleagues from all backgrounds.
It champions more inclusive policies and strategies and provides
a forum where colleagues can come together to share theirexperiences and celebrate their culture• Minds of All Kinds, which raises awareness of mental health andwell-being by facilitating conversations, providing a supportive
community and helping colleagues thrive in an environment that
includes mental well-being in the fabric of our culture• WILDE, which promotes acceptance and support for LGBTQ+
colleagues and allies and engages the Group and the wider
community in debate and activism on LGBTQ+ issues• Women of TEG, which supports, promotes, empowers andrecognises the women of The Economist Group. It provides a place
where women can connect, inspire and learn from one another,both professionally and personally• VOICES, which focuses on making our offices in India—Gurugram
is home to our second-largest office worldwide—more inclusive
spaces for people from various backgrounds. Its aim is to createa culture of equitable opportunities and foster a diverse workplacethat includes representation from marginalised groups• The DisAbility Network, which is committed to fostering an
inclusive environment that supports and empowers colleagues
with visible and invisible disabilities, long-term health conditions
or who are caregivers. Its mission is to raise awareness,
advocate for accessibility and celebrate diverse abilities at
The Economist Group• The Family Network, which supports, promotes and empowers
parents and carers to take control, creating the best versionsof themselves at home and at work.
Data on the composition of our Group by gender and ethnicity is
published on our Group website. Our 2023 gender pay gap report
was published in March 2024.

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71

Corporate governance Stakeholder engagement

Our communities and the environment
The Board is, as ever, very supportive of The Economist
Educational Foundation, an independent charity that combines
the journalistic expertise of The Economist newspaper with teachingknow-how. The Foundation’s mission is to change young people’s
lives by giving them the skills to think and speak for themselves
about current affairs. It does this by enabling inspiring discussions
about the news in classrooms and between schools in different
communities, giving young people exciting experiences of engaging
with the biggest issues of our time. The Group makes a financial
contribution to the charity every year, as do—with our gratitude for
their generosity—some of our shareholders, while many colleagues(current and past) contribute time and expertise to its projects.
Last year, the Group contributed £135,000 to the Foundation(2023: £148,000) (see our sustainability report atwww.economistgroup.com).
The Board also supports The Economist Charitable Trust, whichmatches charitable donations made by colleagues. It is a global
programme overseen by a group of trustees who are all current orformer colleagues. The trustees oversee the budget and ensure thatthe scheme is widely communicated in the organisation. Any budgetthat is not spent by the end of the financial year is donated tocharities proposed by colleagues. The trustees review all proposals
and select those most in line with The Economist Group’s values
where the money would make the most significant impact. The
charitable trust can determine that a charitable cause may meritdouble-matching by colleagues. It can also decide to promote
campaigns to colleagues and encourage them to donate timeor money.
In the year to March 31st 2024, the charitable trust was givena £104,000 budget by the company (2023: £108,000). In August
2023, the charitable trust promoted a global campaign to tackle
wildfire relief, highlighting charities in Greece and Hawaii. This wasfollowed in March 2024 by supporting a charity in Harlem, New York,
providing educational opportunities to young people.
Colleagues are encouraged to undertake other work to support
various communities.

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The Board is committed to reducing carbon emissions andother environmental impacts of the Group’s operations andhas, in recent years, resolved to report in accordance withthe recommendations of the TCFD and to seek regular CDP
ratings, as well as conducting a materiality assessment.
This is discussed on pages 44-47. Last year, in response toshareholder feedback about the size of the annual report,
the Board decided to publish a separate, digital-only report onsocial issues and sustainability (see our sustainability report atwww.economistgroup.com). To comply with applicable legislationand good practice, some sustainability-related reporting iscontained in full, or at least summarised, in this annual report.

Suppliers

We aim to deliver the best journalism, business information, events,
educational and marketing services to our readers and clients, andour long-term success depends on this (see pages 14-37).

The Board recognises the importance of the Group’s supply chain
and of maintaining good relations with suppliers. Major suppliercontracts are subject to Board review and approval, and the Group
has a supplier payment policy to ensure our suppliers are paid on
time. The leadership team, often with the assistance of functional
specialists, reports to the Board on supplier relationships as partof updates on the business. The Board’s technology investmentcommittee reviews and assesses the Group’s relationships withtechnology suppliers in particular.

We gather feedback from our readers and clients through manychannels, including an extensive annual subscriber survey andfeedback at in-person events, and this is reported to the Board.
During the year, the Board has been closely involved in determining
how best to allocate resources to launch new products, improveexisting products and services, develop the platforms for theirdelivery and improve customer service, putting our clients andaudiences at the heart of everything that we do.
As previously reported, we ceased trading with sanctioned
individuals and entities following Russia’s illegal invasion of Ukraine
in 2022. We have continued with our policies in the region: we do notsell subscriptions in Russia and, given the importance of access toindependent, trusted news reporting and analysis, we have lifted the
paywall on our website at www.economist.com to all those who visit
the site from Ukraine and Russia. We are also renewing Ukrainianand Russian subscribers’ digital subscriptions without charge.
This continues to deprive the Group of some revenue, but we feel
it is justified in the circumstances. More on our editorial coveragecan be found on pages 12-19.

We introduced a code of ethics that we expect our suppliers toadhere to. We continue to press for sustainability targets anddata from suppliers, who are responsible for 98% of our reported
greenhouse-gas emissions (see pages 44-47 and our sustainability
report at www.economistgroup.com); this is becoming an
increasingly meaningful part of our supplier selection process.

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73

G OV E R N A N C E R E P O R T

Readers and clientsCorporate governance

The Board and committees
The Board is supported by three permanent committees:
audit and risk, remuneration and nomination. We set upother committees on an ad hoc basis when needed, andcurrently have a technology investment committee.

The permanent committees are all made up of non-executive
directors, and they report to the Board after each meeting.
Meetings are all attended by executives as required bycommittee members.

Audit and risk committee
The audit and risk committee is made up of three non-executive
directors. Chaired by Lady Heywood, the other members are
Georgina Cadbury and Eli Goldstein.
The committee’s role, on behalf of the Board, is to ensure that the
management team produces reliable financial information, such thatour published financial statements give a true and fair view of thebusiness. The committee is also responsible for reviewing risk,
the suitability and effectiveness of the Group’s internal financial
controls, the work and findings of our internal and external auditors,
key accounting policies and judgments, corporate governance, andgovernance around reporting in line with the recommendationsof the TCFD. The audit and risk committee has outsourced theinternal-audit function to PwC to access broader and independent
subject-matter expertise and enable efficient resource allocation.
During the year, PwC reported to the committee on the results ofcompleted internal audits and provided status updates on
implementing actions from previous audits.

Risk management
The Group has carried out a thorough risk assessment, as it does
every year, which is summarised on pages 55-56.
The internal financial-control system has been designed anddeveloped to provide the audit and risk committee withreasonable assurance of the accuracy and reliability of theGroup’s financial records, and its effectiveness has beenreviewed by the committee. The control system includes thefollowing important features:• The Board reviews the Group’s strategy, long-term plan andgoals annually. In addition to this annual review, the strategies
of individual businesses are reviewed as required.
• The Board approves an annual budget.
• Monthly results are reported against the annual budget andforecasts. Page 4 (Financial highlights) and the business review
on pages 20-37 include some of the key performance indicatorsthat are used to measure business performance. The company
reports to shareholders formally twice a year through its interim
and annual reports. There are also quarterly shareholder calls or
meetings (one of which is the AGM) to which all shareholders areinvited (see page 143).
• Treasury procedures cover banking arrangements, hedging
instruments, investments of cash balances and borrowing
procedures. These procedures include colleague responsibilities,
segregation of duties and levels of delegated authority fortreasury matters.
• PwC carries out an independent risk-based programme ofinternal-audit work in all parts of the Group.
• The company has a risk-management function that reviews theregister of key business risks and mitigation actions and reports
to the Board (see pages 55-56). This now includes climate-relatedrisks and opportunities (see pages 48-51).

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The Economist Group annual report and accounts 2024• The company has clearly defined guidelines for the review andapproval of capital-expenditure projects that, in the case ofdigital-product development and technology, currently include
project appraisals and reviews by a dedicated Board technology
investment committee.
Reviews
During the year, the audit and risk committee reviewed:• The Group’s interim and annual reports, and considered thenarrative description of performance in the reports and theaccounting principles, policies and practices adopted in
the financial statements• Results of internal audits, the adequacy of management’s
response and the timeliness of the resolution of key findings.
The chair of the committee met with the PwC internal-audit team
to monitor the effectiveness of the internal-audit function• The scope of the external audit, the work plan and fees proposed,
the level of errors identified during the audit, and the external
auditor’s report summarising its work on the interim andannual reports

Its terms of reference also provide that any shareholder groupthat owns more than 15% of both the “A” special shares and theordinary shares may propose nominees for up to two non-executive
directors (whose election remains subject to the approval of theholders of a majority of the “A” special shares). There is currently
one such nominee on the Board: Eli Goldstein. During the year,
the tenures of Vindi Banga and Eli Goldstein were each extended
for another three years.

Remuneration committee
The remuneration committee is made up of three non-executive
directors. It is chaired by Lord Deighton, and the other members
are Vindi Banga and Lady Heywood. The committee’s role isdescribed in the directors’ report on remuneration on pages 76-77.
See also page 69.

Technology investment committee
The technology investment committee comprises three nonexecutive directors: Lady Heywood, Mustafa Suleyman andDiego Piacentini. Its purpose is to advise on, oversee and track the
performance of our investments in digital products and technology,
reflecting the Board’s recognition of the importance of strong
governance in an area that is so critical to the Group and of thecontributions these three directors in particular can make inthis field.

• The independence of the external auditor (which is reviewed
twice-yearly)• Business-risk updates from the chief executive• Progress updates on the Group’s approach to cyber-security andfraud risk
• The Group’s tax and treasury management• The investment strategy of the Group’s UK defined-benefit
pension scheme.

Nomination committee
The nomination committee is responsible for Board succession
planning (although not for that of the Group’s Trustees). Its aim
is to make sure that the Board has a diverse range of directors
who, between them, have a breadth of experience in useful andrelevant areas. The committee meets as and when required, but
at least annually.
The nomination committee’s terms of reference state that thecommittee should be chaired by the chair of the Board, andthat it should include a director representing the holder of the“B” special shares (currently Lady Heywood) and a director
nominated by any shareholder group that owns more than 15%
of both the “A” special shares and the ordinary shares (currently
Eli Goldstein, who was nominated by the Rothschild family).
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75

G OV E R N A N C E R E P O R T• The company has a cyber-security function that manages theGroup’s risk of cyber-attack. Controls to prevent and detectattacks are supplemented with assurance, mitigation andeducation activities. We manage cyber-resilience by ensuring
we have appropriate, tested plans and recovery resources inplace, coupled with crisis-management actions.

Corporate governanceDirectors’ report on remuneration
The remuneration committee is responsible for the
remuneration policy for senior executives of the Group,
as well as the policy and structure of pay and Groupbonus schemes for colleagues generally.

The committee
The remuneration committee of the Board is made up of three non-executive directors: Lord Deighton (chair), Vindi Banga andLady Heywood. The quorum necessary for transacting business is two members.
The committee is responsible for the remuneration policy for senior executives of the Group and the policy and structure of pay and Groupbonus schemes for colleagues generally. In determining remuneration, the committee follows a policy designed to attract, retain andmotivate high-calibre executives, aligned with the interests of shareholders.
In reaching decisions about salaries and bonuses, the committee considers information about remuneration in other companies in similar
sectors of comparable scale and complexity, and takes advice from remuneration consultants, particularly in terms of best market practiceand benchmarking.
See page 69 for more on the remuneration committee’s activities and the Group’s remuneration policy.
Table 1 Directors’ interests as at March 31st 2024
March 31st 2024

Beneficial holdings

March 31st 2023

Ordinary“A” special“B” special

Ordinary“A” special“B” special

–

3,300

–

–

3,300

–

Lara Boro

24,975

1,150–

12,950500–

Zanny Minton Beddoes

44,965––38,340––Lord Deighton

–

–

–

–

–

–

181,416

14,446–

181,416

14,446

–

–

–

–

–

–

–

Lady Heywood

–

–

–

–

–

–

Diego Piacentini

24,168––17,288

–

–

–

–

–

–

–

–

97,500––97,500––Vindi Banga
Georgina Cadbury1
Eli Goldstein

Mustafa Suleyman
Holdings as trustee
Zanny Minton Beddoes2

The beneficial interests above include directors’ personal holdings, holdings of their spouses and children, and holdings through companies and trusts in which they have an interest.
1 This includes 134,000 Ordinary shares held by L.J.C. Fund Limited, a benevolent company of which Georgina Cadbury is a director.
2 Held as a joint trustee of the Marjorie Deane Journalism Foundation.

Lara Boro and Zanny Minton Beddoes each have the right to acquire 32,500 ordinary shares (2023: 45,000 and 35,000 respectively)
under the restricted share scheme described in the next section. Lara Boro exercised 22,500 options and Zanny Minton Beddoes
exercised 12,500 options in the year.
The executive directors of the company, together with all employees of the Group, are beneficiaries of the company’s employee shareownership trust. As such, Lara Boro and Zanny Minton Beddoes are treated as interested in the 314,052 ordinary shares (2023: 283,353)
held by the trustee of that trust.
76

The Economist Group annual report and accounts 2024

(c) The Economist editorial long-term plan

Executive directors and colleagues participated in annual bonus
incentives in which rewards were linked to Group and businessunit revenue and profit performance, personal performance anddiversity targets.

Some senior journalists who do not participate in the executive longterm plan participate in this three-year cash-bonus scheme, which
is designed to help retain key editorial colleagues. The amount
paid to each participant is determined by the growth in the Group’s
earnings per share, revenue and subscriptions volume, its carbonemissions reductions, and by the number of units awarded to theparticipant at the start of the three-year period. There is a minimum
hurdle to achieve before any payments are made.

(b) Executive long-term plans(d) Restricted share scheme(a) Annual bonus plans

Executives participate in a three-year cash-bonus scheme.
The amount paid to each participant is determined by the growthin the Group’s earnings per share, revenue and subscriptions
volume, its carbon-emissions reductions, and by the numberof units awarded to the participant at the start of the three-year
period. There is a minimum hurdle to achieve before any
payments are made.

The Group also has in place a restricted share scheme under whicha small number of key colleagues have been awarded a right toacquire ordinary shares at a nominal price, usually between one andfour years after the date of the award. The Group has the discretion
to pay out shares or cash on exercise.

Directors’ remuneration
Directors’ remuneration and benefits are shown in table 2.
Non-executive directors do not participate in any bonus scheme,
any long-term incentive scheme or any of the company’s pension
plans. This table shows salaries/fees, annual bonuses and benefits
earned in and charged to the income statement in the year unlessotherwise noted. The table includes future and uncashedentitlements under annual and long-term incentive schemes.

Table 2 Remuneration for the year ended March 31st 2024
Salary/Fees
2024
£000

Annual bonus
2024
£000

Long-term plan
2024
£000

Benefits
2024
£000

Total
2024
£000

Total
2023
£000

Lord Deighton

150

–

–

–

150

150

Lara Boro

640

396

702

17

1,755

2,149

Zanny Minton Beddoes

507

228

278

18

1,031

1,193

Vindi Banga

39

–

–

–

39

39

Georgina Cadbury

39

–

–

–

39

9

Eli Goldstein

39

–

–

–

39

39

Lady Heywood1

39

–

–

–

39

39

Philip Mallinckrodt (retired October 2022)

–

–

–

–

–

23

Diego Piacentini

39

–

–

–

39

39

Mustafa Suleyman

39

–

–

–

39

39

1,531

624

980

35

3,170

3,719

Total
1 Paid to Exor.

Table 3 Directors’ accrued pensions
The pensions that would be paid annually on retirement at age 65 based on service with the company to March 31st 2024 are shown below.
The table does not include any additional voluntary contributions or any resulting benefits.

Zanny Minton Beddoes

Age
at March 31st 2024

Accrued pension atMarch 31st 2024

Accrued pension atMarch 31st 2023

Change56£154,637£146,663£7,974The Economist Group annual report and accounts 2024

77

G OV E R N A N C E R E P O R T

The Group operated a number of annual and long-term bonus
plans during the year, providing performance-based bonuses
for executive directors and colleagues.

Corporate governanceDirectors’ report
The directors present their report to shareholders,
together with the audited consolidated financial
statements, for the year ended March 31st 2024.

Developments and principal activities

Information on the use of financial instruments can be found on
page 120. Information on engagement with suppliers, employees
and others can be found on pages 70-73.

We solicit feedback from all colleagues through regular colleague
engagement surveys, in which we ask questions about purpose,working relationships, culture and working environment; we also
conduct occasional “pulse” surveys during the year. Each year we
select important drivers for organisational improvement basedon colleague feedback and work collectively for improvement.
The results of our surveys are discussed with the Board, whomonitor the progress of our improvement initiatives. See also the“Our colleagues” section on pages 42-43 and our sustainability
report at www.economistgroup.com.

Results and dividends

Equal-opportunity employment

The principal activities of the Group consist of publishing, thesupply of business information and consulting services, conferences,marketing services and data design. More details about theactivities, developments and likely future developments of theGroup are on pages 2-37.

The profit after tax from continuing operations for the financial year
to March 31st 2024 was £34.1m (2023: £31.2m). A final dividend of
120.0p per share (2023: 80.0p) is proposed for the year to March 31st2024. Together with the interim dividend already paid, this makes atotal proposed dividend for the year of 160.0p per share (2023: 120.0p).

Colleagues
We recognise the importance of engaging our colleagues andencouraging them to contribute their diverse perspectives tothe business to help achieve our Group’s strategy and long-term
ambition. We strive to have meaningful two-way dialogue withour colleagues through a range of formal and informal channels.
For example, our all-colleague events, “TEG Conversation”,“Insight Hours” and “Coffee Withs”, as well as newsletters andcolleague surveys, inform, inspire and engage. We consistently
ask our colleagues to share their feedback with managers, andhave regular conversations, making a point of seeking questions
or comments in every communication channel. We have affinity
groups and task-forces to generate meaningful discussions
about our internal culture and to strengthen our diversity.
Our policies and procedures have been developed to continue
the spirit of open dialogue and to align to our purpose. We have
employee-assistance programmes and an anonymous hotline forany colleague who wishes to speak to a third party in confidence.

78

The Economist Group annual report and accounts 2024

The Group is an equal-opportunities employer. Applications for
employment by disabled persons are always fully considered,bearing in mind the abilities of the applicant concerned. In the eventof colleagues becoming disabled, every reasonable effort is madeto ensure that their employment with the Group continues and thatappropriate support is provided. Training, career development andpromotion of disabled persons is, as far as possible, identical to thatof other colleagues. See also our guiding principles on page 65.

UK Streamlined Energy and Carbon Reporting (SECR)SECR disclosures can be found on page 47.

Transactions with related parties
Details of transactions with related parties, which are to bereported under IAS 24, are set out in note 30 to the financial
statements on page 127.

Directors
Profiles of the directors appear on pages 60-61. All executive
directors have contracts of employment. All directors have
served throughout the year and up to the date of signing.

Independent auditor

The company provides, to the extent permitted by law, an indemnity
to all directors and officers of the company and its subsidiaries inrespect of claims against them arising in respect of the conductof the business of the Group. The company has also purchased
directors’ and officers’ insurance cover against certain legal
liabilities and costs for claims in connection with any act oromission by such directors and officers in the execution of
their duties.

A resolution to reappoint Deloitte LLP as auditor to the company,
and another resolution to authorise the directors to fix theirremuneration, will be proposed at the AGM.

Corporate information
The share capital of the company is divided into ordinary shares,“A” special shares, “B” special shares and trust shares. There are
more than 100 “A” special shareholders, and the “B” special sharesare all held by Exor.
The trust shares are held by Trustees (who are described on
page 59), whose consent is needed for certain corporate activities.
The rights attached to the trust shares provide for the continued
independence of the ownership of the company and the editorial
independence of The Economist. Apart from these rights, they
do not include the right to vote on most other matters, receive
dividends or have any other economic interest in the company.
The appointments of the editor-in-chief of The Economist and of
the chair of the company are subject to the approval of the Trustees,
as are transfers of “A” special and “B” special shares.
The ordinary shareholders are not entitled to participate in theappointment of directors, but in most other respects they havethe same rights as the holders of “A” and “B” special shares.
The transfer of ordinary shares must be approved by the Board.

G OV E R N A N C E R E P O R T

Directors’ indemnities

Auditor independence
In line with prevailing good practice, the audit and risk committee
has a policy defining those non-audit services that the independent
auditor may or may not provide to the Group. The policy requiresthat the provision of these services be approved in advance by theaudit and risk committee or, up to pre-approved limits, by the chief
financial officer. A statement of the fees for audit and non-audit
services is set out in note 4 to the consolidated financial statements
on page 99.

Events after the balance-sheet date
There were no material events after the balance-sheet date.

Disclosure of information to the auditor
As far as each of the directors is aware, there is no relevant
information that has not been disclosed to the company’s auditor,and each of the directors believes that all steps have been takenthat ought to have been to make him or her aware of any relevant
audit information, and to establish that the company’s auditor has
been made aware of that information. This confirmation is given andshould be interpreted in accordance with the provisions of Section
418 of the Companies Act 2006.

No one shareholder or group of shareholders acting in concert isentitled (in relation to any resolution, whether proposed at a general
meeting of the company and voted on by way of a poll or put toshareholders as a written resolution) to exercise votes representing
more than 20% of the total voting rights exercisable by shareholders(other than the Trustees); or to hold shares carrying more than 50%
in value of the dividend rights of the company.

Shares held in treasury
5,040,000 ordinary shares were repurchased during the year ended
March 31st 2016 and are held in treasury. The voting and dividend
rights associated with those shares remain suspended.

Corporate governance
Please refer to the report on corporate governance on pages 64-73.

Annual general meeting (AGM)
The notice convening the AGM, to be held at the British Academyof Film and Television Arts, 195 Piccadilly, London W1J 9LN on
Tuesday July 9th 2024 at 12.15pm, can be found on page 143.

The Economist Group annual report and accounts 2024

79

Corporate governanceStatement of directors’ responsibilities in respectof the financial statements
The directors are responsible for preparing the annual
report and the financial statements in accordance withapplicable law and regulations.

Company law requires the directors to prepare financial statements
for each financial year. Under that law the directors have elected
to prepare the Group financial statements in accordance withinternational accounting standards in conformity with therequirements of the Companies Act 2006, and the parent company
financial statements in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom AccountingStandards and applicable law), including FRS 101 Reduced
Disclosure Framework. Under company law, the directors must not
approve the financial statements unless they are satisfied that theygive a true and fair view of the state of affairs of the company andof the profit or loss of the company for that period.
In preparing the parent company financial statements, the directors
are required to:• Select suitable accounting policies and then apply themconsistently• Make judgments and accounting estimates that are reasonable
and prudent• State whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed andexplained in the financial statements• Prepare the financial statements on the going-concern basis
unless it is inappropriate to presume that the company willcontinue in business.
In preparing the Group financial statements, International
Accounting Standard 1 requires that directors:• Properly select and apply accounting policies• Present information, including accounting policies, in a mannerthat provides relevant, reliable, comparable and understandable
information• Provide additional disclosures when compliance with the specificrequirements in International Financial Reporting Standards is
insufficient to enable users to understand the impact of particulartransactions, other events and conditions on the entity’s financial
position and financial performance• Assess the company’s ability to continue as a going concern.

80

The Economist Group annual report and accounts 2024

The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company’stransactions and disclose with reasonable accuracy at any time thefinancial position of the company and enable them to ensure thatthe financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of thecompany and so for taking reasonable steps to prevent and detectfraud and other irregularities.
The directors are responsible for the maintenance and integrity of
the corporate and financial information included on the company’s
website. Legislation in the United Kingdom governing how financial
statements are prepared and disseminated may differ fromlegislation in other jurisdictions.
We confirm that to the best of our knowledge:• The financial statements, prepared in accordance with therelevant financial reporting framework, give a true and fair viewof the assets, liabilities, financial position and profit or loss ofthe company and the undertakings included in the consolidation
taken as a whole• The strategic report includes a fair review of the development andperformance of the business and the position of the company andthe undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and uncertainties
that they face
• The annual report and financial statements, taken as a whole,
are fair, balanced and understandable and provide the informationnecessary for shareholders to assess the company’s position andperformance, business model and strategy.
This responsibility statement was approved by the board of
directors on June 10th 2024 and is signed on its behalf by:
Oscar GrutChief legal officer
Group company secretary and head of ESG
June 10th 2024

F I N A N C I A L S TAT E M E N T S

Financial statements
In this section82Independent auditor’s report to the members of The Economist Newspaper Limited84	Consolidated income statement85	
Consolidated statement of comprehensive income
86	Consolidated balance sheet87	Consolidated statement of changes in equity
88	
Consolidated cashflow statement
90Notes to the consolidated financial statements

128

Company balance sheet

129	Company statement of changes in equity
130Notes to the company financial statements

142

Five-year summary

Safeguarding
our values.
Earning trust.
Sustaining
our growth.

The Economist Group annual report and accounts 2024

81

Consolidated financial statements

Independent auditor’s report to the members of
The Economist Newspaper Limited
Report on the audit of the financial statements
OpinionIn our opinion:• the financial statements of The Economist Newspaper Limited(the “parent company”) and its subsidiaries (the “Group”) givea true and fair view of the state of the group’s and of the parent
company’s affairs as at March 31st 2024 and of the group’s profit
for the year then ended;• the group financial statements have been properly preparedin accordance with United Kingdom adopted international
accounting standards and International Financial ReportingStandards (IFRS) as issued by the International AccountingStandards Board (IASB);• the parent company financial statements have been properly
prepared in accordance with United Kingdom Generally
Accepted Accounting Practice, including Financial ReportingStandard 101 Reduced Disclosure Framework and• the financial statements have been prepared in accordancewith the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:• the consolidated income statement;• the consolidated statement of comprehensive income;• the consolidated and parent company balance sheets;• the consolidated and parent company statements of changes
in equity;• the consolidated cashflow statement;• the related notes 1 to 32; and• the parent company notes 1 to 22.
The financial reporting framework that has been applied in
the preparation of the group financial statements is applicable law,
United Kingdom adopted international accounting standards and
IFRS as issued by the IASB. The financial reporting frameworkthat has been applied in the preparation of the parent company
financial statements is applicable law and United Kingdom
adopted international accounting standards and is applied inaccordance with the provisions of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further describedin the auditor’s responsibilities for the audit of the financial
statements section of our report.

Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the group’s
and parent company’s ability to continue as a going concern fora period of at least twelve months from when the financial statements
are authorised for issue.
Our responsibilities and the responsibilities of the directors withrespect to going concern are described in the relevant sectionsof this report.

Other information
The other information comprises the information included in the annual
report, other than the financial statements and our auditor’s report
thereon. The directors are responsible for the other information
contained within the annual report. Our opinion on the financial
statements does not cover the other information and, except to theextent otherwise explicitly stated in our report, we do not express any
form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the course of
the audit, or otherwise appears to be materially misstated. If we
identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there isa material misstatement of this other information, we are required toreport that fact.
We have nothing to report in this regard.

Responsibilities of directors
As explained more fully in the directors’ responsibilities statement,
the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view,and for such internal control as the directors determine is necessary
to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible forassessing the Group’s and the parent company’s ability to continue asa going concern, disclosing, as applicable, matters related to going
concern and using the going-concern basis of accounting unless the
directors either intend to liquidate the group or the parent company or
to cease operations, or have no realistic alternative but to do so.

We are independent of the Group and the parent company
in accordance with the ethical requirements that are relevant
to our audit of the financial statements in the UK, including the
Financial Reporting Council’s (FRC) Ethical Standard, and wehave fulfilled our other ethical responsibilities in accordancewith these requirements. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted inaccordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.

Conclusions relating to going concern
In auditing the financial statements, we have concluded thatthe directors’ use of the going-concern basis of accounting in the
preparation of the financial statements is appropriate.

A further description of our responsibilities for the audit of
the financial statements is located on the FRC’s website at:www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.

82

The Economist Group annual report and accounts 2024

We considered the nature of the group’s industry and its control
environment, and reviewed the group’s documentation of theirpolicies and procedures relating to fraud and compliance withlaws and regulations. We also enquired of management,internal audit and the directors about their own identification
and assessment of the risks of irregularities, including thosethat are specific to the company’s business sector.
We obtained an understanding of the legal and regulatory
frameworks that the group operates in, and identified the key
laws and regulations that:• had a direct effect on the determination of material amounts anddisclosures in the financial statements. These included the UK
Companies Act, pensions legislation and tax legislation; and• do not have a direct effect on the financial statements but
compliance with which may be fundamental to the group’s ability
to operate or to avoid a material penalty. These included theGeneral Data Protection Regulation.
We discussed among the audit engagement team and relevant internal
specialists such as tax, pensions and IT regarding the opportunities
and incentives that may exist within the organisation for fraud andhow and where fraud might occur in the financial statements.
As a result of the above, we identified the greatest potential for
fraud or non-compliance with laws and regulations in the consulting
revenue stream due to the level of judgement and complexity
related to revenue recognition. In addressing this risk we:• performed detailed substantive testing on a sample of consulting
projects that were ongoing at year end, obtaining evidence
confirming the milestone had been met in accordance with thecontract in assessing whether revenue had been recognised
appropriately and in the appropriate period.
In common with all audits under ISAs (UK), we are also required toperform specific procedures to respond to the risk of management
override. In addressing the risk of fraud through management
override of controls, we tested the appropriateness of journal entries
and other adjustments; assessed whether the judgments made in
making accounting estimates are indicative of a potential bias; andevaluated the business rationale of any significant transactions thatare unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks
identified included the following:• reviewing financial statement disclosures by testing supporting
documentation to assess compliance with provisions of relevantlaws and regulations described as having a direct effect on thefinancial statements;

F I N A N C I A L S TAT E M E N T S

Extent to which the audit was considered capable ofdetecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliancewith laws and regulations. We design procedures in line with
our responsibilities, outlined above, to detect material
misstatements in respect of irregularities, including fraud.
The extent to which our procedures are capable of detecting
irregularities, including fraud, is detailed below.

• enquiring of management, internal audit and in-house legal counsel
concerning actual and potential litigation and claims, and instancesof non-compliance with laws and regulations; and• reading minutes of meetings of those charged with governance andreviewing internal audit reports.

Report on other legal and regulatory requirements
Opinions on other matters prescribed by the Companies
Act 2006
In our opinion, based on the work undertaken in the courseof the audit:• the information given in the strategic report and the directors’
report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and• the strategic report and the directors’ report have been preparedin accordance with applicable legal requirements.
In the light of the knowledge and understanding of the groupand of the parent company and their environment obtained in
the course of the audit, we have not identified any material
misstatements in the strategic report or the directors’ report.

Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report inrespect of the following matters if, in our opinion:• adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been received
from branches not visited by us; or• the parent company financial statements are not in agreement withthe accounting records and returns; or• certain disclosures of directors’ remuneration specified by law
are not made; or• we have not received all the information and explanations werequire for our audit.
We have nothing to report in respect of these matters.

Use of our report
This report is made solely to the company’s members, as a body,in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to thecompany’s members those matters we are required to state to themin an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone
other than the company and the company’s members as a body, for
our audit work, for this report, or for the opinions we have formed.
Jon Young (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, UK
June 11th 2024

• performing analytical procedures to identify any unusualor unexpected relationships that may indicate risks of material
misstatement due to fraud;

The Economist Group annual report and accounts 2024

83

Consolidated financial statements

Consolidated income statement
Year ended March 31st 2024

Revenue

Note

2024
£000

2023
£000

2, 3

366,988376,779

Operating expenses

4(319,615)(334,532)

Operating profit

247,37342,247

Finance income

6

533

845

Finance costs

7(2,444)(3,432)

Profit before tax

245,462

39,660Tax

8Profit for the year

(11,389)(8,462)

34,07331,19834,07331,198Attributable to:Equity holders of the company
Earnings per share
Basic (pence)

9

171.6

157.0

Diluted (pence)

9

170.6

155.9

Dividends per share on a cash basis (pence)

10

120.0

127.0

Dividends per share including proposed dividends (pence)

10

160.0

120.0

84

The Economist Group annual report and accounts 2024

Consolidated statement of comprehensive income
F I N A N C I A L S TAT E M E N T S

Year ended March 31st 2024

Note

Profit for the year

2024
£000

2023
£000

34,07331,198

(794)

2,549

Items that may be reclassified subsequently to the income statement:
Change in fair value of cashflow hedges

24

Attributable tax

8Change in value of interest rate hedges
Attributable tax

8

Net exchange differences on translation of net investments in overseas
subsidiary undertakings

198

(637)

(341)

393

85

41

(568)

(796)

Items that will not be reclassified to the income statement:
Remeasurement of retirement benefit obligations

23

(473)

471

Attributable tax

8

(572)

(812)

Current tax benefit on retirement benefit obligations

8

679

718

Other comprehensive (expense)/income for the year

(1,786)

1,927

Total comprehensive income for the year

32,287

33,12532,287

33,125Attributable to:Equity holders of the company

The Economist Group annual report and accounts 202485

Consolidated financial statements

Consolidated balance sheet
As at March 31st 2024

Note

2024
£000

2023
£000

Property, plant and equipment

12

4,629

5,129

Right-of-use assets

13

23,51428,048Intangible assets

14

50,10948,501

Deferred tax assets

16

Non-current assets

4,436

8,529

82,68890,207

Inventories

17

282

385

Trade and other receivables

18

53,91659,977

1,422

1,054

541

1,795

Current tax assets
Derivative financial instruments

24

Cash and cash equivalents

19

24,776

34,042Current assets

80,937

97,253

Total assets

163,625

187,460(6,783)(10,179)

Trade and other liabilities

20

Borrowings

21–(16,423)

Lease liabilities

22(25,412)(29,285)

Deferred tax liabilities

16–(2,261)Retirement benefit obligations

23(7,947)(10,029)–(160)(40,142)(68,337)

Other liabilities
Non-current liabilities
Trade and other liabilities

20(185,971)(186,771)

Lease liabilities

22(4,748)(6,572)Current tax liabilities(1,298)(1,861)

Current liabilities(192,017)(195,204)

Total liabilities(232,159)(263,541)

Net liabilities(68,534)(76,081)

EquityShare capital

27

1,260

1,260

ESOP shares

28(5,506)(4,606)

Treasury shares

29(188,823)(188,823)

Translation reserve(18,126)(16,764)Retained earnings

142,661

132,852

Total equity(68,534)(76,081)

The consolidated financial statements were approved by the Board of directors and authorised for issue on June 10th 2024.
They were signed on its behalf by:
Paul Deighton
Directors

Lara Boro

The Economist Newspaper Limited registered number 00236383

86

The Economist Group annual report and accounts 2024

Consolidated statement of changes in equity
F I N A N C I A L S TAT E M E N T S

Year ended March 31st 2024

Equity attributable to equity holders of the company
Sharecapital£000

ESOP
shares£000

Treasuryshares£000

Translation
reserve£000

Retainedearnings
£000

Total
equity£000

At April 1st 2023

1,260

(4,606)(188,823)(16,764)

132,852(76,081)

Profit for the year

–

–

–

–

34,07334,073

Other comprehensive expense

–

–

–

(1,362)(424)(1,786)

Total comprehensive income

–

–

–

(1,362)

33,64932,287

Year ended March 31st 2024

Note

Net purchase of own shares

28

–

(900)

–

–

–

(900)

Dividends

10

–

–

–

–

(23,840)(23,840)

At March 31st 2024

1,260

(5,506)(188,823)(18,126)

142,661(68,534)

Year ended March 31st 2023

Sharecapital£000

ESOP
shares£000

Treasuryshares£000

Translation
reserve£000

Retainedearnings
£000

Total
equity£000

Equity attributable to equity holders of the company

Note

At April 1st 2022

1,260

(5,248)(188,823)(18,517)

126,705(84,623)

Profit for the year

–

–

–

–

31,19831,198Other comprehensive income

–

–

–

1,753

174

1,927

–

–

–

1,753

31,372

33,125

–

642

–

–

–

642

Total comprehensive income
Net sale of own shares

28

Dividends

10

At March 31st 2023

–

–

–

–

(25,225)(25,225)

1,260(4,606)(188,823)(16,764)

132,852(76,081)

The translation reserve includes exchange differences arising from the translation of the net investment in foreign operations and of othercurrency instruments designated as hedges of these investments.

The Economist Group annual report and accounts 202487Consolidated financial statements

Consolidated cashflow statement
Year ended March 31st 2024

2024
£000

2023
£000

Operating profit

47,37342,247

Depreciation, amortisation and impairment charges

14,718

14,675

Cashflows from operating activities

Decrease in inventories

103

64

Decrease in trade and other receivables

5,889

3,337

(Decrease) in trade and other liabilities(3,103)(4,833)(Decrease) in retirement benefit obligations(3,000)(4,000)

(123)

(258)

Cash generated from operations

61,857

51,232

Taxes paid

(9,853)(5,860)Net cash generated from operating activities

52,00445,372533

242(Decrease) in provisions

Investing activities
Interest received
Purchase of intangible assets(9,341)(7,148)Purchase of property, plant and equipment(762)(2,774)(9,570)(9,680)

Dividends paid

(23,840)(25,225)

Interest paid

(2,077)(2,489)Payment of lease liabilities(6,711)(8,508)

Lease incentive receipts

–

4,000

Sale of interest rate derivative

–

1,076

Net cash used in investing activities
Financing activities(Purchase)/sale of own shares(1,590)112

Proceeds from borrowings

30,00018,000

Repayment of borrowings(47,000)(21,000)

Net cash used in financing activities(51,218)(34,034)

(482)

1,162

Net (decrease)/increase in cash and cash equivalents(9,266)

2,820

Cash and cash equivalents at the beginning of the year

34,042

31,222

Cash and cash equivalents at the end of the year

24,776

34,042

Effects of exchange rate changes on cash and cash equivalents

88

The Economist Group annual report and accounts 2024

2023
£000

Net debt at beginning of the year

(18,238)(16,102)

Net (decrease)/increase in cash and cash equivalents(9,266)

2,820

Proceeds from borrowings(30,000)(18,000)

Payment of lease liabilities

6,711

8,508

–

(4,000)F I N A N C I A L S TAT E M E N T S

2024
£000

Net debt

Lease incentive receipts
Inception of new lease liabilities, net of disposals(1,095)(12,121)

Repayment of borrowings

47,00021,000

Other non-cash changes

(577)

203

Effects of exchange rate changes on lease liabilities

81

(546)

(5,384)(18,238)

Cash at bank and in hand

24,776

34,042

Total cash and cash equivalents

24,776

34,042

Lease liabilities(30,160)(35,857)

Net debt at the end of the year
Net debt comprises:

Borrowings
Total net debt–

(16,423)(5,384)(18,238)

The Economist Group annual report and accounts 2024

89Consolidated financial statements

Notes to the consolidated financial statements
The Economist Newspaper Limited (the company) and its
subsidiaries (together the Group) are international businesses
covering publishing, the supply of business information andconsulting services, conferences, marketing services anddata design.

2. Standards, interpretations and amendments to publishedstandards that are not yet effective

The company is limited by shares and is a private limited company
incorporated and domiciled in England. The address of its
registered office is The Adelphi, 1-11 John Adam Street, London,
WC2N 6HT.

From the year beginning April 1st 2024:

These consolidated financial statements were approved for issue
by the Board of directors on June 10th 2024.

From the year beginning April 1st 2025:

NOTE 1 Accounting policies

The principal accounting policies applied in the preparation ofthese consolidated financial statements are set out below.

a. Basis of preparation
These consolidated financial statements have been preparedon the going-concern basis and in accordance with International
Financial Reporting Standards (IFRS) and IFRS Interpretations
Committee (IFRSIC) interpretations as adopted by the European
Union (EU) and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS. In respect of
the accounting standards applicable to the Group, there is nodifference between EU-adopted and IASB-adopted IFRS.
These consolidated financial statements have been prepared
under the historical cost convention as modified by the revaluationof financial assets and liabilities (including derivative financial
instruments) to fair value through profit or loss.
Notwithstanding the fact that the Group has net liabilities,
the directors believe it is appropriate to prepare the financial
statements on a going-concern basis based on: the strength of
future anticipated trading; the nature and timing of settlementof the Group’s liabilities; and the availability of committed
financing to meet future cashflow needs of the Group.
1. New standards, interpretations and amendments adopted
in the year
The following standards, interpretations and amendments wereadopted in the year:• IFRS 17 Insurance Contracts;• Amendments to IFRS 17 Insurance Contracts;• Amendments to IAS 1 Presentation of Financial Statements;• Amendments to IFRS 12 Income Taxes; and• Amendments to IAS 8 Accounting policies, changes
in accounting estimates and errors.
The adoption of these standards has not had a material impact
on the financial statements of the Group.

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The Economist Group annual report and accounts 2024

The following published standards and amendments to existing
standards, which have not yet all been endorsed by the EU, areexpected to be effective as follows:• Amendments to IFRS 16 Leases; and• Amendments to IAS 1 Presentation of Financial Statements.
• Amendments to IFRS 21 The Effects of Changes in Foreign
Exchange Rates
The directors do not expect that the adoption of the standards
and interpretations listed above will have a material impact on thefinancial statements of the Group in future periods, although thefull assessment is not complete.
3. Critical accounting assumptions and judgments
The preparation of financial statements in conformity withIFRS requires the Group to make judgments, estimates andassumptions. It also requires management to exercise its
judgment in the process of applying the Group’s accounting
policies. No judgments made in the process of applying theGroup’s accounting policies, other than those involving estimates,
have had a significant effect on the amounts recognised within
the financial statements. The areas requiring a higher degreeof judgment or complexity, or areas where assumptions andestimates are significant to the consolidated financial
statements, are discussed in the relevant accounting policies
under the following headings and in the notes to the accounts
where appropriate:• Employee benefits: Pensions (notes 1m and 23).

b. Consolidation
1. Business combinations
The acquisition method of accounting is used to account forbusiness combinations.
The consideration transferred for the acquisition of a subsidiaryis the fair value of the assets transferred, the liabilities incurred
and the equity interest issued by the Group. The considerationtransferred includes the fair value of any asset or liability resulting
from a contingent consideration arrangement. Acquisition-related
costs are expensed as incurred in the administrative expenses lineof the income statement.
Identifiable assets and identifiable liabilities and contingent
liabilities assumed in a business combination are measured initiallyat their fair values at the acquisition date. The determination of fairvalues often requires significant judgments and the use of
estimates, and for material acquisitions, the fair value of theacquired intangible assets is determined by an independent valuer.
The excess of the fair value of consideration transferred, theamount of any non-controlling interest in the acquiree and theacquisition-date fair value of any previous equity interest in theacquiree over the fair value of the identifiable net assets acquired
is recorded as goodwill.
See note 1e for the accounting policy on goodwill. If this is lessthan the fair value of the net assets of the subsidiary acquired,in the case of a bargain purchase, the difference is recognised
directly in the income statement.
On an acquisition-by-acquisition basis, the Group recognises any
non-controlling interest in the acquiree either at fair value or at
the non-controlling interest’s proportionate share of the acquiree’s
net assets.
Management exercises judgment in determining the classificationof its investments in its businesses.
2. Subsidiaries
Subsidiaries are entities over which the Group has control.
The Group controls an entity when the Group is exposed to,or has rights to, variable returns from its involvement with theentity and has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated fromthe date on which control is transferred to the Group. They aredeconsolidated from the date that control ceases.

c. Foreign currency translation

F I N A N C I A L S TAT E M E N T S

NOTE 1 Accounting policies continued

2. Transactions and balances
Foreign-currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of thetransactions. Foreign-exchange gains and losses resulting fromthe settlement of such transactions and from the translation
at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income
statement, except when deferred in equity as qualifying net
investment hedges.
3. Group companies
The results and financial position of all Group companies that havea functional currency different from the presentation currency aretranslated into the presentation currency as follows:i)	Assets and liabilities are translated at the closing rate
at the date of the balance sheet.
ii)	Income and expenses are translated at averageexchange rates.
iii)	All resulting exchange differences are recognised
as a separate component of equity.
On consolidation, exchange differences arising from thetranslation of the net investment in foreign entities, and ofborrowings and other currency instruments designated as hedgesof such investments, are taken to shareholders’ equity. The Group
treats specific inter-company loan balances, which are notintended to be repaid in the foreseeable future, as part of its net
investment. When a foreign operation is sold, such exchange
differences are recognised in the income statement as part of thegain or loss on sale.
The principal overseas currency for the Group is the US dollar.
The average rate for the year against sterling was $1.26 (2023: $1.21)
and the year-end rate was $1.26 (2023: $1.24).

d. Property, plant and equipment
Property, plant and equipment are stated at historical cost lessdepreciation. Cost includes the original purchase price of theasset and the costs attributable to bringing the asset to its
working condition for intended use. Finance costs which are
directly attributable to the cost of construction of property, plantand equipment are capitalised as part of the costs of that tangible
fixed asset. Land is not depreciated. Depreciation on other assets
is calculated using the straight-line method to allocate their costless their residual values over their estimated useful lives as follows:i) Leasehold buildings: over the period of the lease.

1. Functional and presentation currencyii) Plant and machinery, and equipment: 3-10 years.

Items included in the financial statements of each of the Group’s
entities are measured using the currency of the primary economic
environment in which the entity operates (the “functional currency”).
The consolidated financial statements are presented in sterling,which is the company’s functional and presentation currency.

The carrying value of an asset is written down to its recoverable
amount if the carrying value of the asset is greater than its
estimated recoverable amount.

The assets’ residual values and useful lives are reviewed, andadjusted if appropriate, at each balance-sheet date.

The Economist Group annual report and accounts 202491Consolidated financial statements

Notes to the consolidated financial statements

NOTE 1 Accounting policies continued

e. Intangible assets
1. Goodwill
For the acquisition of subsidiaries made on or after April 1st 2014,
goodwill represents the excess of the consideration transferred,
the amount of any non-controlling interest in the acquiree and theacquisition-date fair value of any previous equity interest in theacquiree over the fair value of the identifiable net assets acquired.
For the acquisition of subsidiaries made prior to April 1st 1998,
purchased goodwill arising on consolidation was written off toreserves in the year in which it arose. For the acquisition ofsubsidiaries made on or after April 1st 1998 and prior to the dateof transition to IFRS on March 31st 2014, goodwill represents theexcess of the cost of an acquisition over the fair value of theGroup’s share of the net identifiable assets acquired. Goodwill
on acquisitions of subsidiaries is included in intangible assets.
Goodwill is tested annually for impairment and carried at cost lessaccumulated impairment losses. An impairment loss is recognised
to the extent that the carrying value of goodwill exceeds therecoverable amount. The recoverable amount is the higher of fairvalue less costs to sell and value in use. These calculations require
the use of estimates and significant management judgment.
Determining whether goodwill is impaired requires an estimationof the value in use of the cash generating units (CGUs) to which
goodwill has been allocated. The value in use calculation requires
the Group to estimate the future cashflows expected to arise fromthe CGU and a suitable discount rate in order to calculate thepresent value. The carrying amount of goodwill at the balancesheet date was £20,266,000 (2023: £20,522,000). There havebeen no impairments to the value of goodwill. See note 14 fordetails of key assumptions, the tests for impairment and thesensitivity of the estimates used by the Group.
Goodwill is allocated to aggregated CGUs for the purpose of
impairment testing. The allocation is made to those aggregated
CGUs that are expected to benefit from the business combinationin which the goodwill arose.
Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold except for disposals
of entities acquired before April 1st 2008, where goodwill was
originally charged to reserves and is not recycled on disposal.
IFRS 3 “Business Combinations” has not been applied
retrospectively to business combinations before the date oftransition to IFRS.
2. Acquired software
Software separately acquired for internal use is capitalised atcost. Software acquired in material business combinations is
capitalised at its fair value as determined by an independent
valuer. Acquired software is amortised on a straight-line basis
over its estimated useful life of between three and ten years.
The amortisation period, method and residual value arereviewed annually.

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3. Internally developed software
Internal and external costs incurred during the preliminary stageof developing computer software for internal use are expensed as
incurred. Internal and external costs incurred to develop computer
software for internal use during the application development stage
are capitalised if the Group expects economic benefits from thedevelopment. Capitalisation in the application development stage
begins once the Group can reliably measure the expenditure
attributable to the software development and has demonstrated
its intention to complete and use the software. Internallydeveloped software is amortised on a straight-line basis overits estimated useful life of between three and ten years.
4. Acquired intangible assets
Acquired intangible assets include customer lists, contracts andrelationships, trademarks and brands, publishing rights, content,
technology and software rights. These assets are capitalised on
acquisition at cost and included in intangible assets. Intangible
assets acquired in material business combinations are capitalised
at their fair value as determined by an independent valuer.
Intangible assets are amortised over their estimated useful livesof between 2 and 20 years, using an amortisation method thatreflects the pattern of their consumption.

f. Other financial assets
Other financial assets, designated as available-for-saleinvestments, are non-derivative financial assets measured at
estimated fair value. Changes in the fair value are recorded inequity in the fair value reserve. On the subsequent disposal of theasset, the net fair value gains or losses are transferred directlyfrom the fair value reserve to retained earnings.
g. Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost is determined using the first in first out (FIFO) method.
The cost of finished goods and work in progress comprises raw
materials, direct labour, other direct costs and related production
overheads. Net realisable value is the estimated selling price inthe ordinary course of business, less estimated costs necessary
to make the sale. Provisions are made for slow-moving andobsolete stock.
h. Cash and cash equivalents
Cash and cash equivalents in the cashflow statement include cashin hand, deposits held on call with banks, other short-term highly
liquid investments with original maturities of three months or less,and bank overdrafts. Bank overdrafts are included in borrowings
in current liabilities in the balance sheet.
Short-term deposits and marketable securities with maturities
of greater than three months do not qualify as cash and cash
equivalents. Movements on these financial instruments areclassified as cashflows from financing activities in the cashflow
statement where these amounts are used to offset the borrowingsof the Group, or as cashflows from investing activities wherethese amounts are held to generate an investment return.

i. Share capital
Ordinary, “A” and “B” special shares are classified as equity.
Incremental costs directly attributable to the issue of newshares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Where any Group company purchases the company’s equity
share capital either under the employee share ownership planor as treasury shares, the consideration paid, including any directly
attributable incremental costs, net of income taxes, is deductedfrom equity attributable to the company’s equity holders until theshares are cancelled, reissued or disposed of. Where such shares
are subsequently sold or reissued, any consideration received,
net of any directly attributable transaction costs and the related
income tax effects, is included in equity attributable to thecompany’s equity holders.

j. Borrowings
Borrowings are recognised initially at fair value, which isproceeds received net of transaction costs incurred. Borrowings
are subsequently stated at amortised cost with any difference
between the proceeds (net of transaction costs) and theredemption value being recognised in the income statement overthe period of the borrowings using the effective interest method.
Where a debt instrument is in a fair value hedging relationship, anadjustment is made to its carrying value in the income statement
to reflect the hedged risk. Interest on borrowings is expensed in
the income statement as incurred.
k. Derivative financial instruments
Derivatives are recognised at fair value and are remeasured
at each balance-sheet date. The fair value of derivatives isdetermined by using market data and the use of establishedestimation techniques such as discounted cashflow and option
valuation models. The Group designates certain of the derivative
instruments within its portfolio to be hedges of the fair value of
its cashflows (cashflow hedges) or hedges of net investments
in foreign operations (net investment hedges).
Changes in the fair value of derivatives that are designated andqualify as cashflow hedges are recorded in other comprehensive
income, together with any changes in the fair value of the hedged
asset or liability that are attributable to the hedged risk.
The effective portion of changes in the fair value of derivatives
that are designated and qualify as net investment hedges arerecognised in other comprehensive income. Gains and losses
accumulated in equity are included in the income statement when
the corresponding foreign operation is disposed of. Gains or losses
relating to the ineffective portion are recognised immediately infinance income or finance costs in the income statement.

F I N A N C I A L S TAT E M E N T S

NOTE 1 Accounting policies continued

l. Taxation
Current tax is recognised on the amounts expected to be paidor recovered under the tax rates and laws that have been enacted
or substantively enacted at the balance-sheet date.
Deferred income tax is provided, using the liability method,on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts. Deferred income tax
is determined using tax rates and laws that have been enacted or
substantively enacted by the balance-sheet date and are expected
to apply when the related deferred tax asset is realised or thedeferred income tax liability is settled.
Deferred tax assets are recognised to the extent that it is probablethat future taxable profits will be available, against which thetemporary differences can be utilised.
Deferred tax is recognised on the unremitted earnings ofsubsidiaries except where the parent is able to control the timingof the remittance of the earnings and it is probable that remittancewill not take place in the foreseeable future.
Current and deferred tax are recognised in the income statement,
except when the tax relates to items charged or credited directly
to equity or other comprehensive income, in which case the tax
is also recognised in equity or other comprehensive income.
Current and deferred tax are recognised in the same componentof total comprehensive income or equity as the transaction orother event that resulted in the tax expense, except for deferred
tax arising on the initial recognition of a business combination,
which is recognised via goodwill.
The Group is subject to income taxes in numerous jurisdictions.
Significant judgment is required in determining the estimates inrelation to the worldwide provision for income taxes. There aremany transactions and calculations for which the ultimate tax
determination is uncertain during the ordinary course of business.
The Group recognises liabilities for anticipated tax-audit issues
based on estimates of whether additional taxes will be due.
Where the final tax outcome of these matters is different from theamounts that were initially recorded, such differences will affectthe tax and deferred tax provisions in the period in which suchdetermination is made.
Deferred tax assets and liabilities require management judgment
in determining the amounts to be recognised. In particular,significant judgment is used when assessing the extent to which
deferred tax assets should be recognised, with consideration
given to the timing and level of future taxable income together
with any future tax-planning strategies.

Certain derivatives do not qualify or are not designated as hedging
instruments. Such derivatives are classified at fair value and any
movement in the fair value is recognised immediately inadministrative costs in the income statement.

The Economist Group annual report and accounts 2024

93

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 1 Accounting policies continued

m. Employee benefits
1. Pensions
The retirement benefit asset and obligation recognised in thebalance sheet represents the net of the present value of thedefined-benefit obligation and the fair value of scheme assets
at the balance-sheet date. The defined-benefit obligation is
calculated annually by independent actuaries using the projected
unit credit method. The present value of the defined-benefit
obligation is determined by discounting estimated future
cashflows using yields on high-quality corporate bonds which haveterms to maturity approximating the terms of the related liability.
When the calculation results in a potential asset, the recognitionof that asset is limited to the asset ceiling, that is the present
value of any economic benefits available in the form of refunds
from the plan or a reduction in future contributions. Management
uses judgment to determine the level of refunds available from theplan in recognising an asset.
Actuarial gains and losses arising from experience adjustments andchanges in actuarial assumptions are charged or credited to equity
in other comprehensive income in the period in which they arise.
The service cost, representing benefits accrued over the year,
is included in the income statement as an operating cost.
Past-service costs are recognised in full in the income statementin the period in which they occur. Net interest is calculated byapplying the discount rate to the net defined-benefit obligationand is presented as finance costs or finance income. Obligations
for contributions to defined-contribution pension plans arerecognised as an operating expense in the income statement
as incurred.
Determining the value of pension liabilities at the balance-sheet
date requires a number of key variables, including inflation,
longevity, salary growth and the discount rate to be estimatedby the Group. These estimates have a material impact on thevaluation of the pension liability. See note 23 for details of thepension liability valuation and the sensitivity of the assumptions
used by the Group.
2. Other post-retirement obligations
The liabilities and costs relating to other post-retirement
obligations are assessed annually by independent
qualified actuaries.
3. Share-based payments
The Group awards certain employees entitlements to cash-settled
share-based payments in accordance with its restricted shareplan. The fair value of the awards granted is recognised as an
employee expense after taking into account the Group’s best
estimate of the number of awards expected to vest. Fair value ismeasured at the date of grant and at each period end and isspread over the vesting period of the award.
Management regularly performs a true-up of the estimate of thenumber of awards that are expected to vest. This is dependent on
the anticipated number of leavers.
A liability equal to the portion of the services received is recognised
at the current fair value determined at each balance-sheet date.

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n. Provisions
Provisions are recognised if the Group has a present legal orconstructive obligation as a result of past events, if it is more likely
than not that an outflow of resources will be required to settle theobligation, and if the amount can be reliably estimated. Provisions
are discounted to present value where the effect is material.
The Group recognises a provision for contingent consideration
at fair value. Where this is contingent on future performance ora future event, judgment is exercised in establishing the fair value.
The Group recognises a provision for onerous lease contracts
when the expected benefits to be derived from a contract are lessthan the unavoidable costs of meeting the obligations under thecontract. The provision is based on the present value of future
payments for surplus leased properties under non-cancellable
operating leases, net of estimated subleasing income.

o. Revenue recognition
Revenue comprises the fair value of the consideration received
or receivable for the sale of circulation, subscriptions, advertising,sponsorship, research, marketing services and delegate fees netof sales tax, rebates and discounts and after eliminating sales
within the Group.
Circulation and advertising revenue relating to a newspaperor other publication is recognised on the date of publication,or, in the case of free publications, the date of dispatch.
Subscription revenue, whether from print circulation, digitalor online, is recognised in the income statement over the periodof the subscription. Sponsorship and delegate revenue arisingin the year relating to future events is deferred until those events
have taken place.
Research revenue is derived from sales of economic, industry andmanagement research products to clients. This revenue is accrued
or deferred and recognised over the contract term in line withmilestones or on delivery of the final product, in accordance withthe contract.
Where a contractual arrangement consists of two or more
separate elements that can be provided to customers either ona stand-alone basis or as an optional extra, such as the provisionof supplementary materials or online access, revenue isrecognised for each element as if it were an individual
contractual arrangement.
Revenue from multi-year contractual arrangements, such as
licensing and second rights contracts or access to businessinformation, is recognised as performance occurs. The
assumptions, risks and uncertainties inherent in long-termcontract accounting can affect the amounts and timing of revenue
and related expenses reported. Certain of these arrangements,
either as a result of a single service spanning more than one
reporting period or where the contract requires the provisionof a number of services that together constitute a single project,
are treated as long-term contracts with revenue recognised ona percentage of completion basis. Percentage of completion is
calculated in line with contract terms. Losses on contracts arerecognised in the period in which the loss first becomes
foreseeable. Contract losses are determined to be the amountby which estimated total costs of the contract exceed theestimated total revenue that will be generated by the contract.

On certain contracts for the sale of digital editions of
The Economist, where the Group acts as agent, only
commission and fees receivable for services rendered arerecognised as revenue. Any third-party costs incurred on behalfof the principal that are rechargeable under the contractual
arrangement are not included in revenue.
Income from recharges of freight and other activities which areincidental to the normal revenue-generating activities are included
in other income.

p. Dividends
Dividends are recorded in the Group’s financial statements in the
period in which they are approved by the company’s shareholders.
Trade receivables are stated at fair value after provision for badand doubtful debts and anticipated future sales returns.

q. Assets held for sale and discontinued operations
Non-current assets and businesses which are to be sold(“disposal groups”) classified as held for sale are measured
at the lower of carrying amount and fair value less costs to sell.
Non-current assets (and disposal groups) are classified as held
for sale if their carrying amount is expected to be recovered
through a sale transaction rather than through continuing use.
This condition is regarded as met only when such a sale is highly
probable and the asset (or disposal group) is available for
immediate sale in its present condition. Management must be
committed to the sale, which should be expected to qualify forrecognition as a completed sale within one year from the dateof classification.
Non-current assets are classified as held for sale from the datethese conditions are met, and such assets are no longer depreciated.
Discontinued operations are classified as held for sale and areeither a separate business segment or a geographical area of
operations that is part of a single co-ordinated plan to sell. Oncean operation has been identified as discontinued, or is reclassified
as discontinued, the comparative information in the income
statement is restated.

r. Leases
The Group assesses whether a contract is, or contains, a leaseat inception of the contract. A lease conveys the right to direct
the use and obtain substantially all of the economic benefits of an
identified asset for a period of time in exchange for consideration.

F I N A N C I A L S TAT E M E N T S

NOTE 1 Accounting policies continued

The lease liability is subsequently measured at amortised costusing the effective interest rate method. It is remeasured, witha corresponding adjustment to the right-of-use asset, when there
is a change in future lease payments resulting from a rent review,
change in an index or rate such as inflation, or change in theGroup’s assessment of whether it is reasonably certain to exercise
an extension or break option.
The right-of-use asset is initially measured at cost, comprising:the initial lease liability; any lease payments already made lessany lease incentives received; initial direct costs; and any
dilapidation or restoration costs. The right-of-use asset issubsequently depreciated on a straight-line basis over the
shorter of the lease term or the useful life of the underlying asset.
The right-of-use asset is tested for impairment if there are any
indicators of impairment.
Leases of low-value assets and short-term leases of 12 months orless are expensed to the Group income statement, as are variable
payments dependent on performance or usage, “out of contract”
payments and non-lease service components.
s. Alternative performance measures
This annual report contains both statutory measures andalternative performance measures which, in management’s view,reflect the underlying performance of the business and provide
a more meaningful comparison of how the Group’s business ismanaged and measured on a day-to-day basis.

The Group’s alternative performance measures and key
performance indicators are aligned to the Group’s strategy andtogether are used to measure the performance of the business.
Alternative performance measures are non-GAAP(Generally Accepted Accounting Practice) measures andprovide supplementary information to assist with theunderstanding of the Group’s financial results and with theevaluation of operating performance for all the periods presented.
Alternative performance measures, however, are not a measureof financial performance under International Financial ReportingStandards (IFRS) and should not be considered as a substitute formeasures determined in accordance with IFRS. As the Group’s
alternative performance measures are not defined terms under
IFRS, they may therefore not be comparable with similarly titledmeasures reported by other companies. Refer to page 142 forfurther information on our alternative performance measures.

The Group as a lessee
A right-of-use asset and corresponding lease liability arerecognised at commencement of the lease.
The lease liability is measured at the present value of the lease
payments, discounted at the rate implicit in the lease, or if thatcannot be readily determined, at the lessee’s incremental
borrowing rate specific to the term, country, currency and startdate of the lease. Lease payments include: fixed payments;
variable lease payments dependent on an index or rate, initiallymeasured using the index or rate at commencement; penalties forearly termination if the lease term reflects the Group exercisinga break option; and payments in an optional renewal period if theGroup is reasonably certain to exercise an extension option or not
exercise a break option.
The Economist Group annual report and accounts 202495

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 2 Segment information

Segment information is presented in respect of the Group's business divisions and reflects the Group's management and internal reporting
structure. A breakdown of the Group's revenue and operating profit by business division is set out below, together with an analysis of the
trading performance of the Group by geographical area.
Revenue

Operating profit

2024
£000

2023
£000

The Economist

217,669

Economist Impact

99,124

Economist Intelligence

50,195

Analysis by businessTechnology and central costs
Revenue/Operating profit

2024
£000

2023
£000

207,515

84,27779,855

117,524

25,592

31,32951,74013,032

12,795––(75,528)(81,732)

366,988376,779

47,37342,247

Revenue reported above is generated from external customers, and inter-segment revenue has been eliminated.
Profit/(loss) before tax

Analysis by origin of legal entity
United Kingdom

Net (liabilities)/assets

2024
£000

2023
£000

2024
£000

2023
£000

32,66431,716(21,607)(18,307)

310

(159)

2,360

2,195

North America

7,437

5,649

(79,022)(87,090)

Asia

4,408

3,009

30,99928,987

Other

643

(555)

(1,264)(1,866)45,462

39,660(68,534)(76,081)

2024
£000

2023
£000

76,54570,152EuropeRevenue by customer location
United Kingdom
Europe79,421

79,475

North America

139,158

147,075

Asia

52,466

61,734

Other

96

The Economist Group annual report and accounts 2024

19,39818,343366,988376,779F I N A N C I A L S TAT E M E N T S

NOTE 3 Revenue from contracts with customers

The following is a description of the nature of the Group’s performance obligations within contracts with customers, broken down
by revenue stream, along with significant judgments and estimates made within each of those revenue streams.

The Economist
Circulation and subscriptions
Circulation revenue relating to a newspaper or other print publications is recognised at a point in time on the date of publication.
The Group acts as agent in the sale of publications and recognises revenues net of commissions paid to distributors. Goods are soldseparately. In determining the transaction price, variable consideration exists in the form of anticipated returns. A provision for anticipatedreturns is made based primarily on historical return rates. If these estimates do not reflect actual returns in future periods, then revenues
could be understated or overstated for a particular period. Circulation revenue relating to the download of digital products hosted bya third party is recognised when control transfers as the customer is granted access to the digital product. Payment for these goods
generally occurs shortly after the point of sale.
Subscription revenue is derived from the sale of print and digital editions of publications, and revenue is recognised in the income
statement on a straight-line basis over the subscription period. The subscription period is based on the number of weeks purchased.
Digital subscriptions may be sold separately or purchased together in bundled packages with print. Subscriptions included in bundledarrangements are considered distinct performance obligations. The performance obligation which is based on the number of weeks is
the same for both a print and digital subscription. Payment for subscriptions generally occurs at the start of the subscription period.
Revenues generated from licensing the Group’s content and sale of second rights contracts are generally recognised over time,
as contracts permit customers to access content throughout the contract period.

Economist Impact
Marketing and consulting services
Consulting revenues are derived from the sale of non-client-branded research and analysis services to clients aiming to understandissues affecting public policy, their business, products or industry. Consulting revenues are recognised over the period of the contract,
as performance occurs. The performance obligations are distinct, being deliverables issued or events held. Transaction prices for
performance obligations are fixed within contracts and recognised in line with the performance obligations. Consulting services soldas part of a bundled arrangement along with the Group’s other product offerings are considered to be distinct performance obligations.
The transaction price is allocated between distinct performance obligations on the basis of their relative stand-alone selling prices.
Customer payments are generally defined in the contract as occurring shortly after invoicing, with invoicing scheduled around thetiming of delivery of milestones.
Marketing services includes revenue derived from client-branded thought leadership, design consultancy and films. Revenue isrecognised for marketing services over the period the services are provided, as performance occurs. The performance obligations
are distinct, being deliverables issued or events held. Transaction prices for performance obligations are fixed within contracts andrecognised in line with the performance obligations. Marketing services sold as part of a bundled arrangement along with the Group’s
other product offerings are considered to be distinct performance obligations. The transaction price is allocated between distinct
performance obligations on the basis of their relative stand-alone selling prices. Customer payments are generally defined in thecontract as occurring shortly after invoicing.
Advertising
Advertising revenue is generated from customers through the sale of printed pages and digital display adverts in the Group’s publications.
Advertising is also generated from the sale of online advertising campaigns on the Group’s websites or on third-party networks andplatforms. Advertising sold into a specific edition is recognised at a point in time when the performance obligation is fulfilled, which isthe date of publication. Advertising sold as part of a prolonged campaign is recognised over time, reflecting the pattern in which theperformance obligation is fulfilled. Advertising may be sold separately or purchased together in bundled packages. Advertising soldas part of a bundled arrangement along with the Group’s other product offerings is considered to be a distinct performance obligation.
The transaction price is allocated between distinct performance obligations on the basis of their relative stand-alone selling prices.
Customer payments are generally defined in the contract as occurring shortly after invoicing.
Events
Revenues relate to event sponsorship and delegate attendance fees. Sponsorships revenue is recognised at a point in time when theevent has taken place. Sponsorship sold as part of a bundled arrangement along with the Group’s other product offerings are considered
to be distinct performance obligations. The transaction price is allocated between distinct performance obligations on the basis of theirrelative standalone selling prices. Customer payments are generally defined in the contract as occurring shortly after invoicing and areoften invoiced in advance of delivery. Revenues generated from delegates relate to fees charged for attendance at the Group’s eventsand are recognised at a point in time when the event has taken place. Customer payments are generally received prior to the event
taking place.

The Economist Group annual report and accounts 202497

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 3 Revenue from contracts with customers continued

Economist Intelligence
Revenue is derived from the sale of subscriptions by EIU, which provides economic, political and business analysis and forecasts for over
200 countries. Revenue is recognised in the income statement on a straight-line basis over the subscription period. The subscription period
is generally 12 months, though there are some instances of multi-year deals. In determining the transaction price, variable consideration
exists in the form of discounts. Discounts reduce the transaction price on a given transaction. Subscriptions may be sold separately
or purchased together in bundled packages. Subscriptions included in bundled arrangements are considered distinct performanceobligations. Customer payments are generally defined in the contract as occurring shortly after invoicing, though credit terms may vary
between markets.
Sponsorship revenues relate to the sponsorship of the Corporate Network and Executive Briefings and are recognised at a point in time
when a meeting has taken place. Customer payments are generally defined in the contract as occurring shortly after invoicing. Revenues
generated from memberships relate to fees charged to members of the Corporate Network, and membership fees are recognised overtime in accordance with the membership period set out in the contract. Revenue generated from the sale of second rights to content isgenerally recognised over time, as contracts permit customers to access content throughout the contract period.
Consulting revenues relate to the sale of specialised market intelligence and business consulting services and provision of industry andcountry data insight in healthcare markets. Revenue is recognised for consulting services over the period of the contract, as performanceoccurs. The performance obligations are distinct, being deliverables issued or events held. Transaction prices for performance obligations
are fixed within contracts and recognised in line with the performance obligations. Consulting services sold as part of a bundledarrangement along with the Group’s other product offerings are considered to be distinct performance obligations. The transaction priceis allocated between distinct performance obligations on the basis of their relative stand-alone selling prices. Customer payments are
generally defined in the contract as occurring shortly after invoicing, with invoicing scheduled around the timing of delivery of milestones.

Contract balances
Transactions within circulation and subscription revenue streams generally entail customer billings at or near the contract’s inception,
and accordingly deferred income balances are primarily related to subscription performance obligations to be delivered over time.
Transactions within marketing-services and consulting-services revenue streams generally entail contractually agreed billing schedules,
sometimes based on progress towards milestones. As the performance obligations within these arrangements are delivered at a point in
time, the extent of accrued income or deferred income will depend upon the difference between revenue recognised and billings to date.
Refer to note 18 for opening and closing balances of accrued income. Refer to note 20 for opening and closing balances of deferred income.

98

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 4 Operating expenses
By function

Note

Promotional costs

2024
£000

2023
£000

31,45928,822

155,370

158,878

Employee-related expense

7,044

6,997

Contract labour

18,59022,630Distribution and fulfilment

39,56339,806

Other product costs

22,65024,963

12

1,593

2,727

Depreciation of right-of-use assets

13

5,402

7,476

Amortisation of acquired intangible assets

14

130

130

Amortisation of software and other intangibles

14

7,593

4,342

Property and facilities

16,895

15,170Technology and communications

3,132

3,347

Professional and outsourced services

8,835

10,426

Other general and administrative costs

2,119

1,704

Operating lease charges

324

272

Foreign exchange (gains)/losses

(907)

5,286

Employee benefit costs

Depreciation of property, plant and equipment

5

(177)

1,556

319,615

334,532

During the year the Group obtained the following services from the Group's auditor

2024
£000

2023
£000

The audit of parent company and consolidated financial statements

372

351

The audit of the company's subsidiaries

247

225

Total audit fees

619

576

(Gain)/loss allowance on trade receivables
Total costs

Other assurance services

43

40

Tax compliance services

162

155

Tax advisory services

50

79

Other services

24–

Total non-audit services

279

274

Total Group auditor's remuneration

898

850

The Economist Group annual report and accounts 202499

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 5 Employee information

The year-end and monthly average number of employees, including executive directors, was as follows:
2024

Analysis by business

Monthly average

2023
Year-end

Monthly average

Year-end

The Economist

456

467

429

438

Economist Impact

346

348

413

384

Economist Intelligence

363

367

381

376

Technology and central

439

461

409

443

1,604

1,643

1,632

1,641

The details of directors’ emoluments are shown on table 2, page 77, within the directors' report on remuneration.
2024
£000

2023
£000

Wages and salaries

130,163

134,158

Social security costs

13,643

13,645

Share-based payment costs

1,397

1,873

Retirement benefits – defined-benefit plans

350

350

Retirement benefits – defined-contribution plans

9,817

8,852

155,370

158,878

2024
£000

2023
£000

533

242

Employee benefit costs including directors' emoluments

Wages and salaries include £1,542,000 (2023: £3,748,000) of restructuring-related costs.

NOTE 6 Finance income

Interest receivable on bank deposits
Income from sale of interest rate derivative
Finance income

–

603

533

845

2024
£000

2023
£000

NOTE 7 Finance costs

Interest payable on bank loans and overdrafts

583

987

Amortisation of debt issue costs

167

458

Interest on lease liabilities

945

913

Net finance costs in respect of retirement benefits

407

359

Other finance charges

342

715

2,444

3,432

Finance costs

100

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 8 Tax
2024
£000

2023
£000

UK corporation tax expense

7,063

6,586

Foreign tax expense

2,840

746

23

594

9,926

7,926

1,013

1,048

1

–

Current tax expense

Adjustment in respect of prior years
Deferred tax expense
Current year
Effect of change in tax rates
Adjustments in respect of prior years
Total tax expense in income statement
Effective tax rate

449

(512)

1,463

536

11,389

8,462

25%

21%

The UK main corporation tax rate for the year is 25% (2023: 19%). The tax on the Group's profit before tax differs from the theoreticalamount that would arise using the UK tax rate for the reasons set out in the following reconciliation:
2024
£000

2023
£000

Profit before tax

45,462

39,660

Tax calculated at UK tax rate of 25% (2023: 19%)

11,366

7,535

Disallowed expenditure

225

310

Non-taxable foreign exchange (gain)/loss

(473)

369

Different tax rates of subsidiaries operating in overseas jurisdictions

(59)

664

US state taxes

(72)

(57)

Movement on uncertain tax provisions

(71)

(289)

Adjustments in respect of prior years

472

82

1

(152)

11,3898,462

Factors affecting the tax charge:

Effect of change in tax rates on deferred tax
Total tax expense for the year
UK

8,081

5,795

Overseas

3,308

2,667

Total tax expense

11,3898,462

In addition to the amount charged to the income statement, the following amounts relating to tax have been directly recognised in othercomprehensive income:
2024
£000

2023
£000

Current tax

679

718

Deferred tax (note 16)(289)(1,408)

390

(690)

The Economist Group annual report and accounts 2024

101

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 9 Earnings per share
Basic
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted average
number of ordinary shares in issue during the year, excluding ordinary shares purchased by the company and held as treasury shares.
Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares to take account of all dilutive
potential ordinary shares and adjusting profit attributable, if applicable, to account for any tax consequences that might arise fromconversion of those shares.
2024
£000

2023
£000

34,07331,198000s

000s

19,852

19,871120

136

19,97220,007

Earnings per share

2024
Pence

2023
Pence

Basic

171.6

157.0

Diluted

170.6

155.9

2024
£000

2023
£000

15,901

17,274

Profit for the year

Weighted average number of shares
Effect of dilutive share options (restricted share scheme units)
Weighted average number of shares for diluted earnings

NOTE 10 Dividends
Cash dividends paid
Final dividend paid 80.0p per share (2023: 87.0p)
Interim paid 40.0p per share (2023: 40.0p)

7,939

7,951

23,84025,225All shareholders other than holders of trust and treasury shares (see notes 27 and 29) receive the above dividend per share.
Dividends amounting to £352,000 (2023: £378,000) in respect of the company's shares held by the ESOP (note 28) have been
deducted in arriving at the aggregate of dividends paid.
Dividends proposed in respect of the year

2024
£000

2023
£000

Interim dividend paid of 40.0p per share (2023: 40.0p)

7,939

7,951

Final dividend proposed of 120.0p per share (2023: 80.0p per share)

23,815

15,901

31,75423,852The directors are proposing a final dividend in respect of the financial year ended March 31st 2024 of 120.0p. Dividends amounting
to £502,000 in respect of the company's shares held by the ESOP have been deducted in arriving at the total dividend proposedof £31,754,000. The proposed final dividend is subject to approval by shareholders and has not been recognised as a liability inthese financial statements.

102

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 11 Share-based payments

The Group's total charge recognised with respect to share-based payment transactions amounted to £1,397,000 (2023: £1,873,000).
The total carrying value of share-based payment transactions is £2,911,000 (2023: £3,389,000), analysed as:
2024
£000

2023
£000

Current liabilities

1,485

1,972

Non-current liabilities

1,426

1,417

2,911

3,389

The Group operates a restricted share scheme (RSS). This scheme is for key employees who have been awarded a right to acquire
ordinary shares at a nominal price between two and four years after the date of the award. The Group has the discretion to pay out sharesor cash on exercise. The vesting of restricted shares is dependent on continuing service over a two- to four-year period. The fair value ofthe shares granted under the RSS is determined using the share price at the date of grant. Participants are entitled to dividends during
the vesting period and therefore the share price is not discounted.
2024

2023

No. of options

Weighted average
share price (£)

No. of options

Weighted average
share price (£)

Outstanding at April 1st

136,250

33.01

123,000

29.63

Granted during the year

49,50032.46

45,50031.02

Restricted share scheme

Forfeited during the year

(16,500)(33.27)––

Exercised during the year

(49,000)(32.99)(32,250)(32.32)

Outstanding at March 31st

120,250

33.60

136,250

33.01

Exercisable at March 31st

38,25034.41

38,75037.34

The weighted average remaining contractual life for outstanding options at March 31st 2024 was 13 months (2023: 14 months).

The Economist Group annual report and accounts 2024

103

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 12 Property, plant and equipment
Cost
At April 1st 2022

Short-leaseholdbuildings£000

Equipment
£000

Total
£000

9,382

31,725

41,107

Additions

1,472

1,269

2,741

Disposals(4,066)(27,782)(31,848)

Exchange differences

146

406

552

At March 31st 2023

6,934

5,618

12,552

Additions

133

634

767

Disposals

(821)

(430)

(1,251)

Transfers

–

(85)

(85)

Exchange differences

68

106

174

At March 31st 2024

6,314

5,843

12,157

Short-leaseholdbuildings£000

Equipment
£000

Total
£000

At April 1st 2022

6,093

29,60935,702

Charge for the year

876

1,851

2,727

(3,766)(27,733)(31,499)

Accumulated depreciation

Disposals
Exchange differences

143

350

493

At March 31st 2023

3,346

4,077

7,423

Charge for the year

496

1,097

1,593

Disposals

(759)

(383)

(1,142)

Transfers

–

(485)

(485)

Exchange differences

49

90

139

At March 31st 2024

3,132

4,396

7,528

At April 1st 2022

3,289

2,116

5,405

At March 31st 2023

3,588

1,541

5,129

At March 31st 2024

3,182

1,447

4,629

Carrying amounts

104

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 13 Right-of-use assets
Leasehold buildings
£000

Cost
At April 1st 2022

36,896

Additions

12,920

Disposals(10,048)

Exchange differences

402

At March 31st 2023

40,170Additions

1,103

Disposals(2,084)

Exchange differences(323)

At March 31st 2024

38,866
Leasehold buildings£000

Accumulated depreciation
At April 1st 2022

14,487

Charge for the year

7,476

Disposals(10,020)

Exchange differences

179

At March 31st 2023

12,122

Charge for the year

5,402

Disposals(1,986)

Exchange differences(186)

At March 31st 2024

15,352Carrying amounts
At April 1st 2022

22,409At March 31st 2023

28,048At March 31st 2024

23,514The Group leases several buildings. The average lease term is 55 months (2023: 21 months).
The maturity analysis of lease liabilities is presented in note 22.
The Group’s consolidated income statement includes the following amounts relating to leases:
Year ended March 31st
Depreciation expense on right-of-use assets
Interest expense on lease liabilities

2024
£000

2023
£000

5,402

7,476

945

913

The total cash outflow for leases in the year ended March 31st 2024 was £7,656,000 (2023: £9,421,000). The total cash inflow for leases
in the year ended March 31st 2024 was £nil (2023: £4,000,000).

The Economist Group annual report and accounts 2024

105

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 14 Intangible assets

Cost

Goodwill£000

Acquiredtechnology &databases£000

Acquiredcustomer
relationships£000

Trademarks,
licenses andsoftware£000

Intangible assets
in development
£000

Total
£000

At April 1st 2022

30,240

1,474

1,200

54,826

6,364

94,104

Additions

–

–

–

1,412

4,697

6,109

Disposals–––(15,810)–(15,810)

Transfers
Exchange differences
At March 31st 2023

–

–

–

6,364

(6,364)

–

615

–

–

59

–

674

30,855

1,474

1,200

46,851

4,697

85,077

Additions

–

–

–

–

9,740

9,740

Disposals––(1,200)(68)–(1,268)Transfers

–

–

–

9,577

(9,492)

85

Exchange differences

(284)

–

–

266

–

(18)

At March 31st 2024

30,571

1,474–

56,626

4,945

93,616

Accumulated amortisation

Goodwill£000

Acquiredtechnology &databases£000

Acquiredcustomer
relationships£000

Trademarks,
licenses andsoftware£000

Intangible assets
in development
£000

Total
£000

At April 1st 2022

10,272

1,094

1,200

34,506263

47,335Charge for the year

–

130

–

4,342

–

4,472

Disposals–––(15,346)–(15,346)

Exchange differences

61

–

–

54

–

115

At March 31st 2023

10,333

1,224

1,200

23,556263

36,576Charge for the year

–

130

–

7,593

–

7,723

Disposals––(1,200)(68)–(1,268)Transfers

–

–

–

748

(263)

485

Exchange differences

(28)

–

–

19

–

(9)

At March 31st 2024

10,305

1,354–

31,848–43,507At April 1st 2022

19,968380–

20,3206,101

46,769At March 31st 2023

20,522250–

23,295

4,434

48,501At March 31st 2024

20,266120–

24,778

4,945

50,109Carrying amounts

Intangible assets in development and licenses and software are largely internally generated assets which include integration of purchased
licences and software.

106

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 14 Intangible assets continued

Goodwill
The goodwill carrying value of £20,266,000 relates to acquisitions completed after January 1st 1998. Prior to January 1st 1998, all goodwill
was written off to reserves on the date of acquisition. For acquisitions completed between January 1st 1998 and March 31st 2014, no value
was ascribed to intangibles other than goodwill and goodwill on each acquisition was amortised over a period of up to 20 years. On adoptionof IFRS on April 1st 2014, the Group chose not to restate the goodwill balance and at that date the balance was frozen (amortisation ceased)
and the useful life of goodwill became indefinite. If goodwill had been restated then a significant value would have been ascribed to otherintangible assets, which would be subject to amortisation, and the carrying value of goodwill would be significantly lower. For acquisitions
completed after April 1st 2014, value has been ascribed to other intangible assets which are amortised.
Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating units (CGUs) that are expected tobenefit from that acquisition. During the year, goodwill was tested for impairment in accordance with IAS 36 Impairment of Assets.
The methodology applied to the value in use calculations included:• Cashflow projections based on financial plans approved by management covering a five-year period;• Cashflows for the final year of the plan, increased in line with growth expectations of the applicable businesses;• Pre-tax discount rates of 10.5%, 1.5 percentage points higher than the company's derived weighted average cost of capital (WACC) of 9.0%;• Long-term nominal growth of 2.5%.
No impairment losses were identified on review (2023: £nil).
Further disclosures in accordance with IAS 36 are provided where the Group holds an individual goodwill item relating to a CGU thatis significant, which the Group considers to be 15% of the total net book value, in comparison with the Group's total carrying value of
goodwill. The following CGUs fall within this definition of significant: EuroFinance Conferences and Healthcare.
EuroFinance Conferences has a long-term growth rate of 2.5%, a carrying value of £7,526,000 and a recoverable amount of £35,037,000,
which equates to a surplus of £27,511,000. A discount rate of 39% would need to be applied for the recoverable amount to fall below thecarrying value. Healthcare has a long-term growth rate of 2.5%, a carrying value of £12,740,000 and a recoverable amount of £33,784,000,
which equates to a surplus of £21,044,000. A discount rate of 23% would need to be applied for the recoverable amount to fall below thecarrying value.
The cumulative goodwill written off to reserves by the Group is £17,943,000 (2023: £17,943,000).

Other intangible assets
Other intangibles include licenses, software developed internally, acquired customer relationships and acquired software and databases.
Acquired intangible assets are valued separately for each acquisition and the primary method of valuation is the discounted cashflow
method, and they are amortised over their expected useful lives at the rates set out in the accounting policies in note 1 of thesefinancial statements.

NOTE 15 Investments

The Group holds a 5% equity interest in Parable Ventures Limited, a virtual-reality business. Its registered address is 64 New Cavendish
Street, London, W1G 8TB, United Kingdom. The cost of investment of £100,000 has been fair valued at £nil in 2024 (2023: £nil).

The Economist Group annual report and accounts 2024

107

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 16 Deferred tax

Deferred tax assets
Deferred tax liabilities

2024
£000

2023
£000

4,436

8,529

–

(2,261)

4,436

6,268

Substantially all of the deferred tax assets are expected to be recovered after more than one year.
Deferred income tax assets and liabilities may be offset when there is a legally enforceable right to offset current income tax assets
against current income tax liabilities and when the deferred income taxes relate to the same fiscal authority. At March 31st 2024 theGroup has unrecognised deferred income tax assets of £344,000 (2023: £36,000) in respect of non-trading, trading and capital losses.
The recognition of the deferred tax assets is supported by management's forecasts of the future profitability of the relevant businesses.
The movement on the deferred tax account is as follows:

At April 1st
Exchange differences

2024
£000

2023
£000

6,268

7,997

(79)

215

(Charge) to income statement(1,463)(536)(Charge) to other comprehensive income(289)(1,408)

(1)

–

4,436

6,268

Effect of change in tax rates
At March 31st

The movement in deferred tax assets and liabilities during the year is as follows:

Deferred tax assets
At April 1st 2022
Exchange differences
Credit/(charge) to income statement(Charge) to other comprehensive income
Effect of change in tax rates
At March 31st 2023

Retirement
benefitobligations£000

Capitalallowances
and intangibles£000

Incentives£000

Generalprovisions
£000

Other
£000

Total
£000

3,371

–

1,605

3,323

1,737

10,036

–

–

35

141

47

223

–

–

558

(1,208)

330

(320)

(812)

–

–

–

(596)

(1,408)

–

–

–

–

(2)

(2)

2,559

–

2,198

2,256

1,516

8,529

Exchange differences

–

(2)

(17)

(51)

(9)

(79)

(Charge)/credit to income statement–(1,012)

(298)

248

(401)

(1,463)(Charge)/credit to other comprehensive income

(572)

–

–

–

283

(289)

Jurisdictional netting–(1,148)––(1,113)(2,261)

Effect of change in tax rates

–

–

–

(1)

–

(1)

1,987

(2,162)

1,883

2,452

276

4,436

At March 31st 2024

Other deferred income tax assets and liabilities include temporary differences on IFRS 16 lease liability of £618,000 (2023: £965,000);IFRS 16 right-of-use lease asset of £(562,000) (2023: £(929,000)); derivatives and financial instruments of £(135,000) (2023: £(449,000));
disallowed interest of £345,000 (2023: £470,000) and other differences. At March 31st 2024 the Group has recognised deferredincome tax assets of £nil (2023: £188,000) in respect of capital losses and £nil (2023: £186,000) in respect of trading losses.

108

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 16 Deferred tax continued
Capital allowances
and intangibles
£000

Other
£000

Total
£000

(624)

(1,415)(2,039)

17

(25)

(8)

(541)

325

(216)

–

2

2

At March 31st 2023

(1,148)(1,113)(2,261)

Jurisdictional netting

1,148

1,113

2,261

At March 31st 2024

–

–

–

Deferred tax liabilities
At April 1st 2022
Exchange differences(Charge)/credit to income statement
Effect of change in tax rates

Deferred taxes recognised at the balance sheet date are determined using the anticipated future tax rate. As the current enacted UK
corporation tax rate of 25% is expected to remain stable, the relevant UK deferred tax balances are calculated using this rate (2023: 25%).
No deferred tax liability is recognised on temporary differences of £11,627,000 (2023: £9,829,000) relating to the unremitted earnings ofcertain overseas subsidiaries as the Group is able to control the timing of the reversal of these temporary differences and it is probablethat they will not reverse in the foreseeable future. The temporary differences at March 31st 2024 represent only the unremitted earningsof those overseas subsidiaries where remittance to the UK of those earnings may result in a tax liability as a result of taxes levied by theoverseas tax jurisdictions in which these subsidiaries operate.

NOTE 17 Inventories
2024
£000

2023
£000

Raw materials

262

314

Work-in-progress

20

34

Finished goods

–

37

282

385

No inventories are pledged as security. The cost of inventory recognised as an expense in the year is £5,620,000 (2023: £6,805,000).

The Economist Group annual report and accounts 2024

109

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 18 Trade and other receivables
Current
Trade receivables

2024
£000

2023
£000

31,61937,269Other receivables

3,239

2,676

Prepayments

9,453

9,207

Accrued income

9,605

10,82553,91659,977

Trade receivables are stated net of provision for expected bad and doubtful debts and trade sales returns. Trade sales return provisions
were £1,578,000 at March 31st 2024 (2023: £1,507,000). Accrued income represents contract assets, which are unbilled amounts generally
from marketing services and consulting revenue streams where revenue to be recognised over time has been recognised in excess ofcustomer billings to date. The carrying value of the Group's trade and other receivables approximates its fair value.
The movements in the provision for expected credit losses are as follows:
2024
£000

2023
£000

At April 1st

3,443

2,594

Income statement movements

(539)

1,157

Utilised

(183)

(291)

Exchange differences
At March 31st

23

(17)

2,744

3,443

The Group reviews its expected credit-loss provisions at least twice a year following a detailed review of receivable balances andhistorical payment profiles. Management believes all the remaining receivable balances are fully recoverable.
The ageing of the Group's trade receivables is as follows:
2024
£000

2023
£000

19,542

19,586

Past due less than a month

5,611

9,394

Past due more than a month but less than two months

3,712

4,536

Past due more than two months but less than three months

1,775

1,695

Past due more than three months

979

2,058

31,61937,269Within the due date

Total trade receivables

The concentration of credit risk is limited due to the customer base being large and unrelated.

110

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F I N A N C I A L S TAT E M E N T S

NOTE 19 Cash and cash equivalents

Cash at bank and in hand

2024
£000

2023
£000

9,389

17,943

15,387

16,09924,776

34,042

Short-term bank deposits

Short-term bank deposits are invested with banks and earn interest at the prevailing short-term deposit rates.
At the end of the year, the currency split of cash and cash equivalents was US dollar 47% (2023: 34%), sterling 33% (2023: 44%),
euro 4% (2023: 4%) and other 16% (2023: 18%).
Cash and cash equivalents have fair values that approximate to their carrying value due to their short-term nature.

NOTE 20 Trade and other liabilities
2024
£000

2023
£000

Trade payables

18,901

12,051Social security and other taxes

3,671

2,780

Accruals

19,98824,283Liability for share-based payments

1,485

1,972

124,195

124,343

Current

Deferred income
Other liabilities

17,731

21,342

185,971

186,771

Non-current
Liability for share-based payments

1,426

1,417

Deferred income

3,319

6,544

Other liabilities

2,038

2,218

6,783

10,179

192,754

196,950

Total

The carrying value of the Group's trade and other liabilities approximates fair value.
The deferred income balance comprises the unexpired portion of subscriptions for The Economist and Economist Intelligence products
and services, and revenue billed in advance for future events, research and consultancy projects not yet delivered.

The Economist Group annual report and accounts 2024

111

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 21 Financial liabilities—borrowings

The Group's borrowings, which are all non-current and all denominated in sterling, are as follows:
Non-current
Bank loans – maturing between two and five years

2024
£000

2023
£000

–

16,423More detail on the Group's accounting for financial instruments is included in the Group's accounting policies. The Group's approachto managing risks in relation to financial instruments is described in note 26.
The market values stated below are based on clean market prices at the year-end. The effective interest rates relate to the underlying
debt instruments.
2024

Bank loans

2023

Effective
interest rate%

Carrying
value
£000

Marketvalue£000

Carrying
value
£000

Market
value
£000

–

–

–

16,42317,000

2024
£000

2023
£000

80,00063,000

The Group has the following undrawn capacity on its committed borrowing facilities as at March 31st:

Floating rate – expiring beyond one year

The Group has committed borrowing facilities of £80m via a syndicated multi-currency revolving credit facility which matures in
October 2027.

NOTE 22 Lease liabilities
2024
£000

2023
£000

Not later than one year

4,748

6,572

Later than one year and not later than five years

16,654

16,778Maturity analysis:

8,758

12,50730,16035,857

Non-current

25,412

29,285Current

4,748

6,572

30,16035,857

Later than five years
Analysed as:

The net decrease in lease liabilities during the year ended March 31st 2024 was £5,697,000 (2023: £8,159,000) which includes foreignexchange gain on lease liabilities of £81,000 (2023: losses of £546,000).
The Group does not face a significant liquidity risk with regard to its lease liabilities.

112

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F I N A N C I A L S TAT E M E N T S

NOTE 23 Retirement benefit and other post-retirement obligations

A reconciliation of the net retirement benefit obligation reported in the balance sheet is shown in the following table:

UK Group scheme
Post-retirement medical benefits

2024
£000

2023
£000

6,174

8,828

1,773

1,201

7,947

10,029The Group operates pension schemes for most of its employees throughout the world, which are funded by the Group. The main
scheme for UK staff who joined before 2003 (the UK Group scheme) provided funded defined benefits. It was closed to new members
on December 31st 2002 and closed to remaining employees on March 31st 2020. The scheme had a defined-contribution underpin andprovided for those employees who joined before 2003, for the better of defined-benefit and defined-contribution benefits. Definedcontribution schemes are operated for UK and non-UK staff. In compliance with legislation the Group operates a defined-contribution
plan, The Economist Group Pension Plan, into which relevant employees are automatically enrolled. The assets of each scheme areheld in separate trustee-administered funds with independent qualified actuaries or other professionals acting as advisers. Actuarial
valuations are undertaken at regular intervals. The Group also has a post-retirement medical benefit plan (PRMB) which is unfunded but
is accounted for and valued similarly to defined-benefit pension plans.
The most recent full actuarial valuation of the UK Group scheme was at January 1st 2021. This showed the market value of assets of the
UK Group scheme to be £385.0m. The actuarial valuation of pension liabilities was £480.9m leaving a technical provisions deficit of£95.9m. The actuarial method used for the valuation was the projected unit method. The foregoing liabilities represent the Scheme
Specific Funding (SSF) Technical Provisions as agreed by the Group and the trustees. The SSF level was 80%. The January 2021 valuation
was used as a basis for determining the ongoing company funding rate, effective January 1st 2021. A triennial valuation as at January 1st
2024 is under way.
The Group and the trustees agreed to allow for post-valuation experience to determine the Recovery Plan and therefore it is basedon a funding shortfall of £50.0m at January 1st 2022. The Group agreed that the funding shortfall will be eliminated by April 30th 2026
and will contribute £3,000,000 per annum until April 2026. In the year ended March 31st 2024, the Group contributed £3,350,000(2023: £4,350,000) towards the funding shortfall. Following the closure of the scheme to future accrual of benefits for active
participants, there are no further regular contributions due to the scheme.
The majority of the benefit payments are from trustee-administered funds; however, there are also a number of unfunded plans where thecompany meets the benefit payment obligation as it falls due. Plan assets held in the UK Group scheme are governed by local regulations
and practice in the UK, as is the nature of the relationship between the Group and the trustees and their composition. Responsibility forgovernance of the plans, including investment decisions and contribution schedules, lies jointly with the company and the board oftrustees. The board of trustees must be composed of representatives of the company and plan participants in accordance with the
plan's resolutions.
The main overseas schemes and one UK scheme are based on defined contributions; amounts totalling £122,000 were accrued(2023: £9,000 accrued) in respect of these schemes at the year-end.

UK Group scheme
The valuation of the UK Group scheme has been updated by independent actuaries to March 31st 2024. The major assumptions used
to determine this valuation are as follows:
2024
%

2023
%

CPI inflation

2.75

2.75

Increase in pensionable salaries

n/a

n/a

Increase in pensions in payment

2.75

2.75

Increase in deferred pensions

2.75

2.75

Discount rate for scheme liabilities

4.90

4.80

The discount rate is derived from the corporate bond yield curve applied to the expected future cashflows from the scheme.
The CPI inflation assumption takes into account the UK government's long-term CPI inflation target (expected from 2030 onwards),
and expectations of CPI inflation before then.
As the UK Group Scheme is closed to future accrual of active entitlement, there is no future increase in pensionable salaries.

The Economist Group annual report and accounts 2024

113

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 23 Retirement benefit and other post-retirement obligations continued
The mortality assumptions used in the valuation of the scheme are summarised in the table below, and have been selected to reflect
the characteristics and the experience of the membership of the plan. This has been done by using SAPS4 light tables with an external
reduction to liabilities of 0.75% with longevity projection based on CMI 2022 and the year in which the member was born, with a 1% per-year
underpin to future improvements and Parameter A, equal to 0.25% p.a. (2023: SAPS3 light tables, CMI 2021, year of birth, 1% underpin,
Parameter A of 0.25%).
2024
years

2023
years

– Men

87.6

88.3

– Women

89.1

89.8

Longevity at age 65 for current retirees

Longevity at age 65 for future retirees, current age 45
– Men

88.5

89.2

– Women

90.2

90.9

2024
£000

2023
£000

Equities

121,782

109,695

Government and corporate bonds

17,792

21,086

The assets of the UK Group scheme and the deficit are as follows:

Property

41,206

37,836

LDI

92,342

86,948–1,051

Absolute return credit

3,117

22,806

Fair value of scheme assets

276,239

279,422

Present value of scheme liabilities(264,759)(265,775)

Other

Scheme surplus

11,48013,647

Asset ceiling adjustment (IAS 19)(17,654)(22,475)

Net defined benefit obligation(6,174)(8,828)The table below further disaggregates the UK Group scheme assets into additional categories and those assets which have a quoted
market price in an active market and those that do not:
2024

2023

Quotedmarket price£000

No quoted
market price£000

Quotedmarket price£000

No quoted
market price£000

UK equities

18,658–21,880–

Non-UK equities

102,957–

87,815

–

–

167

–

158

17,792–

21,086––

41,206–

37,836

92,342–

86,948–

Private equity
UK corporate bonds
Property
LDI
Other

114

The Economist Group annual report and accounts 2024

3,117

–

23,699–234,866

41,373

241,428

37,994

F I N A N C I A L S TAT E M E N T S

NOTE 23 Retirement benefit and other post-retirement obligations continued
The liquidity profile of the UK Group scheme assets is as follows:
2024
£000

2023
£000

Liquid – call less than 1 month

233,943

233,943

Illiquid – call greater than 3 months

42,29645,479Invested assets include money-purchase AVCs and transferred-in benefits that are notionally held within assets but which are notincluded in balance-sheet assets or liabilities.
The assets do not include any of the Group's own financial instruments nor any property occupied by, or other assets used by, the Group.
The actual return on scheme assets was a gain of £5,357,000 (2023: £128,424,000 loss).
2024
£000

2023
£000

279,422414,979

Interest income

13,21011,506Return on scheme assets excluding interest income(7,853)(139,930)

Employer contributions

3,350

4,350

Fair value of scheme assets
At April 1st

(350)

(350)

Benefit payments from the scheme(11,540)(11,133)

At March 31st276,239

279,422

2024
£000

2023
£000

At April 1st

265,775

371,145

Interest expense

12,483

10,237

Losses from experience

5,420

16,821

Gains from changes in financial assumptions(7,379)(121,295)

Benefit payments from the scheme(11,540)(11,133)

At March 31st264,759

265,775

Administration expenses

Present value of scheme liabilities

The weighted average duration of the defined-benefit obligation is 15 years (2023: 17 years).

The Economist Group annual report and accounts 2024

115

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 23 Retirement benefit and other post-retirement obligations continued

Sensitivity analysis of scheme liabilities
The sensitivity of the present value of the scheme's liabilities to changes in the principal assumptions used is set out below:
Change inassumption by%

Impact on
scheme liabilities%

Inflation+/- 0.5+/- 6.5

Pensions in payment+/- 0.5+/- 5.5

Revaluation rate of deferred pensions+/- 0.5+/- 1.5

Discount rate+/- 0.5+/- 7.0

If the average expected age of death of pensioners lengthened by one year, the liabilities of the scheme would increase by 3.0% (2023: 2.5%).
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

Post-retirement medical benefit scheme (PRMB)The Group provides post-retirement medical benefits to certain former employees. At March 31st 2024, 34 retired and former employees(2023: 34) were eligible to receive benefits. The liability was remeasured at the year-end by a qualified independent actuary as follows:
2024
%

2023
%

Healthcare premium inflation

12.00

8.00

Discount rate for scheme liabilities

4.90

4.80

Present value of scheme liabilities

2024
£000

2023
£000

At April 1st

1,201

1,442

Employer contributions

(123)

(134)

Interest expense

55

39

Losses/(gains) from experience

201

(131)

Losses/(gains) from changes in financial assumptions

465

(6)

Gains from changes in demographic assumptions

(26)

(9)

1,773

1,201

Assumptions

At March 31st

116

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 23 Retirement benefit and other post-retirement obligations continued

Income statement
The amounts recognised in the income statement are as follows:
2024
PRMB
£000

Definedcontribution
£000

Total
£000

–

–

9,817

9,817

Administration expenses

350

–

–

350

Total operating expense

350

–

9,817

10,167

Interest on scheme assets(13,210)––(13,210)

Interest on scheme liabilities

12,48355–

12,538Interest adjustment due to asset ceiling

1,079

–

–

1,079

Net finance expense

352

55

–

407

Net income statement charge

702

55

9,817

10,574

UK Group
Scheme
£000

PRMB
£000

Definedcontribution
£000

Total
£000

Current service cost

UK Group
Scheme£0002023

Current service cost

–

–

8,852

8,852

Administration expenses

350

–

–

350

Total operating expense

350

–

8,852

9,202

Interest on scheme assets(11,506)––(11,506)

Interest on scheme liabilities

10,23739–

10,276

Interest adjustment due to asset ceiling

1,589

–

–

1,589

Net finance expense

320

39

–

359

Net income statement charge

670

39

8,852

9,561

The Economist Group annual report and accounts 2024

117

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 23 Retirement benefit and other post-retirement obligations continued

Other comprehensive income
The following (losses)/gains have been recognised in other comprehensive income:
2024
£000

2023
£000

6

283

Post-retirement medical benefits

(640)

146

Unfunded retirement benefits

161

42

Total (losses)/gains recognised in year

(473)

471

UK Group scheme

Through the UK Group scheme the Group is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility
The scheme holds some growth assets, whose returns are not necessarily well correlated with the movement of the liabilities. As such,the deficit in the scheme may fluctuate as a result of asset volatility. To mitigate investment risk, the trustees monitor the scheme's
investment strategy on an ongoing basis.
Inflation risk
The majority of benefits are linked to inflation and so increases in inflation will lead to higher liabilities (although in most cases there arecaps in place which protect against extreme inflation).
Longevity risk
Increases in life expectancy will increase the period over which benefits are expected to be paid, which increases the value placed on thescheme's liabilities.
Changes in bond yields
A decrease in corporate bond yields will increase the value placed on the scheme liabilities, although this will be partially offset by anincrease in the value of the scheme's bond asset holdings.
Salary risk
Following closure of the scheme to future accrual for active participation, there is no longer any salary risk.

118

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F I N A N C I A L S TAT E M E N T S

NOTE 24 Derivative financial instruments
2024
Gross notionalamounts£000

Assets£000

Liabilities£000

Forward foreign US dollar exchange contracts

74,677541–

Total contracts in a fair value hedge relationship

74,677541–

Current contracts in a fair value hedge relationship

2023

Current contracts in a fair value hedge relationship
Forward foreign US dollar exchange contracts

Gross notionalamounts£000

Assets£000

Liabilities£000

49,980

1,335

–

264

460

–

50,244

1,795–

Non-current contracts in a fair value hedge relationship
Interest rate cap
Total contracts in a fair value hedge relationshipThe carrying value of the above derivative financial instruments equals their fair value. Fair values are determined by using market dataand established estimation techniques such as discounted cashflow and option valuation models.
The Group's portfolio of exchange contract derivatives includes foreign-exchange forwards and is diversified by maturity andcounterparty. The Group has designated these forwards as hedges, which reduces the risk of volatility in the income statement frommovements in the US dollar. Counterparty exposure from all derivatives is managed, together with that from deposits and bank-accountbalances, within credit limits that reflect published credit ratings to ensure that there is no significant risk to any one counterparty.
At March 31st 2023, an interest rate hedge was in place to cap the Group's cashflow exposure on variable interest rates on the first£25m of borrowings drawn down under revolving credit facilities at 2% until November 2023. This interest rate hedge has now matured.
No significant derivative transaction had a market value (positive or negative) at the balance-sheet date that exceeded 3% of the Group's
consolidated total equity.
The Group has reviewed all of its material contracts for embedded derivatives that are required to be separately accounted for if they
do not meet certain requirements, and has concluded that there are no material embedded derivatives.

The Economist Group annual report and accounts 2024

119Consolidated financial statements

Notes to the consolidated financial statements

NOTE 25 Classification of financial instruments

The accounting classification of each class of the Group's financial assets and financial liabilities, together with their carrying values andmarket values, is as follows:
2024
Fair value

Cash and cash equivalents

Amortised cost

Fair value hedging
instrument
£000

FVOCI
£000

Financialassets£000

Other financial
liabilities£000

Total carrying
value
£000

Total market
value
£000

–

–

24,776–

24,776

24,776––

31,619–31,61931,619Derivative financial instruments

541

–

–

–

541

541

Total financial assets

541–

56,395–56,93656,936

Trade payables

–

–

–

(18,901)(18,901)(18,901)

Lease liabilities

–

–

–

(30,160)(30,160)(30,160)

Total financial liabilities

–

–

–

(49,061)(49,061)(49,061)

Trade receivables

2023
Fair value
Fair value hedging
instrument£000

Cash and cash equivalents
Trade receivables

Amortised cost
FVOCI
£000

Financialassets£000

Other financial
liabilities£000

Total carrying
value
£000

Total market
value
£000

–

–

34,042–

34,042

34,042––37,269–37,26937,269Derivative financial instruments

1,795

–

–

–

1,795

1,795

Total financial assets

1,795

–

71,311–

73,106

73,106

Trade payables

–

–

–

(12,051)(12,051)(12,051)

Bank loans

–

–

–

(16,423)(16,423)(17,000)

Lease liabilities

–

–

–

(35,857)(35,857)(35,857)

Total financial liabilities

–

–

–

(64,331)(64,331)(64,908)

Transactions in derivative financial instruments are only undertaken to manage risks arising from underlying business activity,in accordance with the Group's treasury policy as described in note 26.
The Group designates certain qualifying financial instruments as hedges of the fair value of its US dollar cashflows and interest rate caps
(cashflow hedges). Changes in the fair value of these derivative financial instruments (to the extent they are effective) are recorded inother comprehensive income, together with any change in the fair value of the hedged asset attributable to the hedged risk.
None of the Group's financial assets or liabilities is designated at fair value through the income statement upon initial recognition.
More detail on the Group's accounting for financial instruments is included in the Group's accounting policies (note 1k). The Group's
approach to managing risks in relation to financial instruments is described in note 26.

120

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F I N A N C I A L S TAT E M E N T S

NOTE 26 Financial risk management

The Group's approach to the management of financial risks together with sensitivity analysis of its financial instruments is set out below:

Treasury policy
The Group's treasury policies are directed to giving greater certainty of future revenues and costs and ensuring that the Group has
adequate liquidity.
The Group holds financial instruments to finance its operations and to manage the interest rate and currency risks arising from its
operations and its sources of finance. The Group finances its operations by a mixture of cashflows from operations, leases on its
properties and longer-term facilities from banks. The Group borrows principally in sterling at floating rates of interest, using derivative
financial instruments (derivatives), where appropriate, to generate the desired currency profile and interest rate basis. The derivatives
used for this purpose are principally rate swaps, rate caps and collars, forward and option foreign-exchange contracts. The main risks
arising from the Group's financial instruments are interest rate risk, liquidity and refinancing risk, counterparty risk and foreign-currency
risk. These risks are managed by the treasury committee under policies approved by the Board, which are summarised in this note.
All the treasury policies remained unchanged throughout the year.
The audit committee receives regular reports on the Group's treasury activities, policies and procedures. The treasury department is not
a profit centre and its activities are subject to regular review by the treasury committee.

Interest rate risk management
The Group's bank borrowings are in sterling, with the interest rate on these borrowings tied to SONIA. The Group's exposure tointerest rate fluctuations on its borrowings is managed by borrowing on a floating-rate basis and by hedging interest rate exposures
where appropriate.
At March 31st 2024, there were no hedges of interest rate exposures in place (see note 24). The fair value of the interest rate hedges
at March 31st 2024 was nil (2023: £460,000).

Liquidity and refinancing risk management
The maturities of contracted cashflows associated with the Group's financial liabilities are shown in the table on page 122. This table has
been drawn up based on the undiscounted contractual cashflows of the financial liabilities including both interest and principal cashflows.
Any cashflows based on a floating rate are calculated using interest rates as set at the date of the last rate reset. The contractual maturity
is based on the earliest date on which the Group may be required to settle. All derivative amounts are shown gross, although the Groupnet settles these amounts wherever possible.
Any amounts drawn under revolving credit facilities are assumed to mature at the maturity date of the relevant facility, with interest
calculated as payable in each financial year up to and including the date of maturity of the facility.

The Economist Group annual report and accounts 2024

121Consolidated financial statements

Notes to the consolidated financial statements

NOTE 26 Financial risk management continued
2024
GBP
£000

USD
£000

Other
£000

Not later than one year

60,165(78,132)(5,142)(23,109)

Later than one year and not later than five years(14,778)(1,594)(281)(16,653)

Later than five years(8,758)––(8,758)36,629(79,726)(5,423)(48,520)

74,677––74,677

Maturity analysis:

Total
£000

Analysed as:
Derivative financial instruments – inflows–(74,136)–(74,136)

Trade payables(11,542)(3,456)(3,903)(18,901)

Lease liabilities(26,506)(2,134)(1,520)(30,160)

36,629(79,726)(5,423)(48,520)

GBP
£000

USD
£000

Other
£000

Total
£000

Not later than one year

35,222(50,161)(3,269)(18,208)

Later than one year and not later than five years(33,350)(2,299)(542)(36,191)

Later than five years(12,507)––(12,507)(10,635)(52,460)(3,811)(66,906)

49,980––49,980Derivative financial instruments – outflows

2023

Maturity analysis:

Analysed as:
Derivative financial instruments – inflows
Derivative financial instruments – outflows–(48,600)–(48,600)

Trade payables(10,335)(1,145)(571)(12,051)

Lease liabilities(29,902)(2,715)(3,240)(35,857)

Bank loans and overdrafts(20,378)––(20,378)(10,635)(52,460)(3,811)(66,906)

122

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F I N A N C I A L S TAT E M E N T S

NOTE 26 Financial risk management continued
The following table details the Group's remaining contractual maturity for its non-derivative financial assets. This table has been drawn up
based on the undiscounted contractual maturities of the financial assets, including interest that will be earned on those assets, except
where the Group anticipates that the cashflow will occur in a different period.
2024

Maturity analysis:
Not later than one year

GBP
£000

USD
£000

Other
£000

Total
£000

17,37832,971

6,046

56,395

17,37832,971

6,046

56,395

8,181

11,662

4,933

24,776

Analysed as:
Cash and cash equivalents
Trade receivables

9,197

21,3091,113

31,61917,37832,971

6,046

56,395

GBP
£000

USD
£000

Other
£000

Total
£000

25,88635,673

9,752

71,311

25,88635,673

9,752

71,311

2023

Maturity analysis:
Not later than one year
Analysed as:
Cash and cash equivalents

15,092

11,547

7,403

34,042

Trade receivables

10,794

24,126

2,349

37,26925,88635,673

9,752

71,311The Group's debt facilities require it to meet certain covenants based on interest cover, net debt and profits adjusted for certain non-cash
items and the impact of foreign exchange. Breaching the covenants would result in the Group being in default of the facilities, potentiallyresulting in the facilities being withdrawn. Management regularly monitors the covenants and prepares detailed cashflow forecasts toensure that sufficient headroom is available and that the covenants are not close or potentially close to breach. At March 31st 2024, theGroup's net debt to EBITDA measured before the impact of IFRS 16 and before exceptional items was (0.5) times (2023: (0.45) times).
The Group also maintains undrawn committed borrowing facilities. At March 31st 2024, the committed undrawn facilities amounted
to £80,000,000 (2023: £63,000,000) and their weighted average maturity was 42 months (2023: 42 months).

Financial counterparty risk management
Counterparty credit limits, which take published credit ratings and other factors into account, are set to cover the Group's total aggregate
exposure to a single financial institution. The limits applicable to published credit-ratings bands are approved by the treasury committee
within guidelines approved by the Board. Exposures and limits applicable to each financial institution are reviewed regularly.
The Group also has counterparty risk with respect to trade and other receivables. The concentration of this risk is limited due tothe Group's large and broad customer base. Trade receivable exposures are managed locally in the business units where they arise.
Allowance is made for expected credit losses based on management's assessment of the risk of non-payment, taking into accountthe ageing profile and circumstance.

Foreign-currency risk management
The Group's principal foreign-exchange exposure is to the US dollar. The Group's businesses generated approximately 59% of its revenues
in US dollars, including approximately 32% of the revenues of its UK-based businesses, and approximately 68% of its operating profits
are US dollar-denominated. The Group is therefore exposed to foreign-exchange risk on the US dollar incomes in its UK businesses,
the translation of results of foreign subsidiaries and of loans to and from foreign operations within the Group where the denominationof the loan is not in the functional currency of the lender/borrower.

The Economist Group annual report and accounts 2024

123

Consolidated financial statements

Notes to the consolidated financial statements

NOTE 26 Financial risk management continued
The carrying amounts of the Group's US dollar-denominated monetary assets and liabilities at March 31st are as follows:
AssetsUS dollar

Liabilities

2024
£000

2023
£000

2024
£000

2023
£000

32,97135,673(5,590)(3,860)A series of US dollar contracts is put in place each month to sell forward surplus US dollars so as to hedge up to 85% of the company's
UK-based US dollar cashflows for the coming 12 months. The value of these forward contracts is based on management's estimate of its
future US dollar cashflows over a 12-month period. If management materially underestimates the company's future US dollar cashflows,
this would lead to too few forward contracts being in place and the company being more exposed to swings in US dollar to sterlingexchange rates. An overestimate of the company's US dollar-denominated cashflows would lead to associated costs in unwinding
ineffective and excess forward contracts. Forward exchange contracts are gross settled at maturity. Subsidiaries normally do not hedgetransactions in foreign currencies into the functional currency of their own operations. Each subsidiary is encouraged to invoice sales
in its local functional currency where possible.
Cashflow hedges – maturing in less than one year

2024

2023

Average exchange rate

$1.25

$1.20

Foreign currency ($000)

93,59460,044Contract value (£000)

74,67749,980541

1,335Fair value (£000)

As at March 31st 2024, the aggregate amount of unrealised gains/losses under forward foreign-exchange contracts deferred in the fairvalue reserve relating to future income transactions is £541,000 gains (2023: unrealised gains of £1,335,000). It is anticipated that thetransactions will take place over the next 12 months, at which stage the amount deferred in equity will be released to the income
statement. Prior-year gains of £1,335,000 were recycled from other comprehensive income into the income statement during the year.
As at March 31st 2024, the fair value of interest rate caps is £nil (2023: £460,000). The interest rate cap was in place until November 2023.
There were no ineffective cashflow hedges in place at the year-end.

Fair value of financial instruments
The fair values of financial assets and financial liabilities are determined as follows:
Level 1 – the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets
is determined with reference to quoted market prices.
Level 2 – foreign-currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted
interest rates matching maturities of the contracts. Interest rate caps are measured using dealer quotes. The fair value of other financial
assets and liabilities is determined in accordance with generally accepted pricing models based on discounted cashflow analysis using
prices from observable current market transactions and dealer quotes for similar instruments.
Level 3 – fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are notbased on observable market data (unobservable inputs).
As at March 31st 2024 and the prior years, all the resulting fair value estimates have been included in level 2, apart from investments inunlisted securities, which are classified as level 3. Movements in level 3 fair value measurements are shown in note 15.

124

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F I N A N C I A L S TAT E M E N T S

NOTE 26 Financial risk management continued

Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the returnto shareholders through the optimisation of the debt and equity balance.
The capital structure of the Group consists of debt, which includes cash deposits (note 19), bank borrowings (note 21) lease liabilities(note 22) and equity attributable to equity holders comprising share capital, reserves and retained earnings as disclosed in the statementof changes in equity.

Other financial instruments not recorded at fair value
The directors consider that the carrying amounts of financial assets and liabilities recorded at amortised cost in the financial statements
approximate their fair values. Such financial assets and liabilities include cash and cash equivalents, loans and trade receivables, trade
payables and bank loans.
Financial instruments—sensitivity analysis
As at March 31st 2024, the sensitivity of the carrying value of the Group's financial instruments to fluctuations in interest rates andexchange rates is as follows:
Impact of 1%

Impact of 10%

Carrying
value
£000

increase ininterest rates£000

decrease ininterest rates£000

stronger
US dollar£000

weakerUS dollar£000

Cash and cash equivalents

24,776

–

–

1,296

(1,060)

Other net financial assets

12,718

–

–

1,530

(1,252)Derivative financial instruments
Lease liabilities

541

–

–

(8,237)

6,740(30,160)

–

–

(188)

154

7,875

–

–

(5,599)

4,582

The table shows the sensitivities of fair values of each class of financial instruments to an isolated change in either interest or foreignexchange rates. Other net financial assets comprise trade receivables less trade payables.
The sensitivities of derivative instruments are calculated using established estimation techniques such as discounted cashflows.
A large proportion of the movements shown above would affect equity rather than the income statement, due to the location andfunctional currency of the entities in which they arise and the availability of net investment hedge treatments.

The Economist Group annual report and accounts 2024

125Consolidated financial statements

Notes to the consolidated financial statements

NOTE 27 Share capital

At March 31st 2024 and 2023

No. of shares

Share capital£000

25,200,000

1,260

At March 31st 2024 and 2023

Issued, fully paid shares

Number£000“A" special shares of 5p each

1,260,000

63“B" special shares of 5p each

1,260,000

63

Ordinary shares of 5p each

22,680,000

1,134

Trust shares of 5p each100–

25,200,100

1,260

The authorised share capital amounts to 40,000,100 and is unchanged in the year. The nominal value of authorised shared capitalis £2,000,005.
A summary of the rights of each class of shares is included in the directors' report on page 79. The trust shares participate in a distributionof capital only to a limited extent and accordingly are not treated as equity share capital.
The company holds 5,040,000 of its own ordinary shares in treasury; these shares carry no rights.

NOTE 28 Employee Share Ownership Plan (ESOP)At April 1st 2022
Purchase of ESOP shares

No. of shares£000

305,293

5,248

10,964324

Sale of ESOP shares(32,904)(966)

At March 31st 2023

283,353

4,606

Purchase of ESOP shares

56,463

1,664

Sale of ESOP shares(25,764)(764)

At March 31st 2024

314,052

5,506

The nominal value of the ESOP shares, which have a par value of 5p each, amounted to £15,703 (2023: £14,168). The ESOP provides
a limited market for ordinary shares of The Economist Newspaper Limited to be bought and sold. Employees of the Group can apply
to buy shares from the ESOP twice a year at the latest indicative share valuation, and all other shareholders can offer to sell their sharesto the ESOP. A subsidiary company, The Economist Group Trustee Company Limited, acts as trustee of the ESOP and handles all sharetransactions. The ESOP has not waived its entitlement to dividends on these shares. At March 31st 2024, 120,250 (2023: 136,250) of theshares are under option to employees and have been conditionally granted to them.

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F I N A N C I A L S TAT E M E N T S

NOTE 29 Treasury shares
At March 31st 2024 and 2023

No. of shares£000

5,040,000

188,823

The treasury shares have a par value of 5p per share and their nominal value amounts to £252,000 (2023: £252,000). These shares do notattach any voting rights or rights to dividends. The shares represent 20% of called-up share capital (2023: 20%).

NOTE 30 Related party transactions

The Group has taken advantage of the exemption allowed under IAS 24 Related Party Disclosures not to disclose transactions andbalances between Group companies that have been eliminated on consolidation.
The key management personnel are deemed to be members of the company's Board and the Group leadership team (see pages 60-63).
Key management compensation paid or payable, including the value of awards made under the restricted share scheme, is set out below:
2024
£000

2023
£000

6,279

7,147

Retirement benefits

365

382

Long-term incentives

3,369

3,301

10,013

10,830

3,683

4,322

Salaries and short-term employment benefits

Of which:
Executive directors
Non-executive directors
Other members of the leadership team

386

402

5,944

6,106

10,013

10,830The directors who served during the year received dividends of £170,000 (2023: £88,000) in respect of shares held in the company.

NOTE 31 Financial commitments

There are contingent Group liabilities that arise in the normal course of business in respect of legal claims, indemnities, warranties
and guarantees in relation to former subsidiaries. None of these claims is expected to result in a material gain or loss to the Group.

NOTE 32 Events after the balance-sheet date

There were no material events after the balance-sheet date.

The Economist Group annual report and accounts 2024

127

C0mpany financial statements

Company balance sheet
As at March 31st 2024

Note

2024
£000

2023
£000

Investments in subsidiaries

4552,077

552,077

Intangible assets

525,79823,690Property, plant and equipment

6

3,873

4,331

Right-of-use assets

7

20,542

22,91993,920152,343

1,054

3,505

Non-current assets

697,264

758,865

Amounts due from subsidiaries

50,085

5,426

9

280

369

Trade and other receivables

10

17,361

17,859Derivative financial instruments

16

541

1,795

1,650

–

Amounts due from subsidiaries
Deferred tax assets

8

Inventories

Current tax assets

10,36917,578Current assets

80,28643,027

Total assets

777,550

801,892

Cash and cash equivalents

11

Trade and other liabilities

12(4,827)(5,052)

Deferred tax liabilities

8–(1,323)Retirement benefit obligations

13(6,083)(7,875)

Lease liabilities

14(23,666)(26,460)

Borrowings

15–(16,423)–(161)

Non-current liabilities(34,576)(57,294)

Amounts due to subsidiaries(266,692)(268,119)

Other liabilities

Trade and other liabilities

12(83,328)(70,369)

Lease liabilities

14(2,950)(3,516)–(480)

Current liabilities(352,970)(342,484)

Total liabilities(387,546)(399,778)

390,004

402,114

1,260

1,260

Current tax liabilities

Net assets
Share capital

17

ESOP shares

18(5,506)(4,606)

Treasury shares

19(188,823)(188,823)(3,239)(2,445)Retained earnings

586,312596,728

Total equity

390,004

402,114

Translation reserve

The profit for the year is £13,651,000 (2023: £4,311,000).
These financial statements were approved by the Board of directors and authorised for issue on June 10th 2024.
They were signed on its behalf by:
Paul Deighton
Directors

128

Lara Boro

The Economist Group annual report and accounts 2024

Company statement of changes in equity
F I N A N C I A L S TAT E M E N T S

Year ended March 31st 2024

Equity attributable to equity holders of the company
Sharecapital£000

ESOP
shares£000

Treasuryshares£000

Translation
reserve£000

Retainedearnings
£000

Total
equity£000

At April 1st 2023

1,260

(4,606)(188,823)(2,445)596,728

402,114

Profit for the year

–

–

–

–

13,651

13,651Other comprehensive expense

–

–

–

(794)

(227)

(1,021)

Total comprehensive income

–

–

–

(794)

13,424

12,630

–

(900)

–

–

–

(900)

–

–

–

–

(23,840)(23,840)

At March 31st 2024

1,260

(5,506)(188,823)(3,239)586,312390,004

Year ended March 31st 2023

Sharecapital£000

ESOP
shares£000

Treasuryshares£000

Translation
reserve£000

Retainedearnings
£000

Total
equity£000

At April 1st 2022

1,260

(5,248)(188,823)(4,994)

617,545419,740

Profit for the year

–

–

–

–

4,311

4,311

Other comprehensive income

–

–

–

2,549

97

2,646

–

–

–

2,549

4,408

6,957

–

642

–

–

–

642

Year ended March 31st 2024

Net purchase of own shares

Note

18

Dividends

Equity attributable to equity holders of the company

NoteTotal comprehensive income
Net sale of own shares
Dividends
At March 31st 2023

18

–

–

–

–

(25,225)(25,225)

1,260(4,606)(188,823)(2,445)596,728

402,114The Economist Group annual report and accounts 2024

129

C0mpany financial statements

Notes to the company financial statements
NOTE 1 Accounting policies

The financial statements of The Economist Newspaper Limited (the company) are prepared in accordance with Financial ReportingStandard 101 Reduced Disclosure Framework (FRS 101) as issued by the Financial Reporting Council and with those parts of theCompanies Act 2006 applicable to companies reporting under FRS 101.
Accounting policies are detailed in note 1 to the consolidated financial statements.
As permitted by FRS 101, the company has taken advantage of the disclosure exemptions available under that standard in relation toshare-based payments, financial instruments, capital management, presentation of comparative information in respect of certain assets,
presentation of a cashflow statement, standards not yet effective and related party transactions.
As permitted by Section 408 of the Companies Act 2006, the company has elected not to present its own income statement for thefinancial year.
The financial statements are prepared on a going-concern basis under the historical-cost convention, with the exception of derivatives
which are recognised at fair value.
The accounting policies applied in the preparation of these company financial statements have been consistently applied to the periods
presented unless otherwise stated and are the same as those set out in note 1 to the consolidated financial statements, with the additionof the following:

Investments
Investments in subsidiaries are stated at cost less impairment.

NOTE 2 Employee information

The year-end and monthly average number of employees, including executive directors, was as follows:
2024
Monthly
average

The Economist
Economist Impact

2023
Year-end

Monthly
averageYear-end

414

420

350

365

74

71

110

101

Technology and central

297

312

276

300

Total employees

785

803

736

766

2024
£000

2023
£000

Wages and salaries

74,44871,311Social security costs

9,540

8,974

Share-based payment costs

1,499

1,664

Retirement benefits – defined-benefit plans

280

280

6,036

5,264

91,80387,493The details of directors’ emoluments are shown on table 2, page 77, within the directors' report on remuneration.
Employee benefit costs including directors' emoluments

Retirement benefits – defined-contribution plans

Wages and salaries include £1,239,000 (2023: £1,609,000) of restructuring-related costs.

130

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F I N A N C I A L S TAT E M E N T S

NOTE 3 Share-based payments

The company's total charge recognised with respect to share-based payment transactions comprised:

Restricted share scheme (cash or share settled)

Total carrying value of share-based payment transactions
Restricted share scheme (cash or share settled)

Analysed as:
Current liabilities
Non-current liabilities

2024
£000

2023
£000

1,499

1,664

2024
£000

2023
£000

2,598

2,820

2024
£000

2023
£000

1,255

1,654

1,343

1,166

2,598

2,820

Details of share-based payment incentive schemes operated by the company and inputs to the valuation models are shown in note 11of the consolidated financial statements.
2024

2023

No. of options

Weighted average
share price(£)

No. of options

Weighted average
share price(£)

Outstanding at April 1st

116,750

32.89

107,000

29.52

Granted during the year

37,50032.46

37,50031.02

Forfeited during the year

–

–

–

–

Exercised during the year

(45,750)(32.96)(27,750)(32.21)

Outstanding at March 31st

108,500

33.45

116,750

32.89

Exercisable at March 31st

32,50033.93

31,75033.47

Restricted share scheme

The weighted average remaining contractual life for outstanding options at March 31st 2024 was 14 months (2023: 14 months).

The Economist Group annual report and accounts 2024

131

C0mpany financial statements

Notes to the company financial statements

NOTE 4 Investments in subsidiaries
2024
£000

2023
£000

552,077

552,077

Licenses andsoftware£000

Intangible assets
in development
£000

Total
£000

48,725

6,279

55,004

Additions

766

4,290

5,056

Disposals(12,941)–(12,941)

Transfer

6,279(6,279)–At March 31st 2023

42,8294,290

47,119Additions

–

8,345

8,345

Disposals

(6)

–

(6)

Transfer

8,744(8,744)–At March 31st 2024

51,5673,891

55,458

Licenses andsoftware£000

Intangible assets
in development
£000

Total
£000

At April 1st 2022

32,111

263

32,374Charge for the year

3,692

–

3,692

Transfer(12,637)–(12,637)

At March 31st 2023

23,166263

23,429Charge for the year

6,231

–

6,231

263

(263)

–

29,660–29,660At April 1st and March 31st

The directors believe that the carrying value of the investments is supported by their underlying net assets.

NOTE 5 Intangible assets
Cost
At April 1st 2022

Amortisation

Transfers
At March 31st 2024
Carrying amounts
At April 1st 2022

16,614

6,016

22,630At March 31st 2023

19,663

4,027

23,690At March 31st 2024

21,907

3,891

25,798132

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 6 Property, plant and equipment
Leaseholdbuildings:
short
£000

Equipment
£000

Total
£000

At April 1st 2022

6,131

22,26728,398Additions

709

1,614

2,323

Disposals(1,628)(19,981)(21,609)

At March 31st 2023

Cost

5,212

3,900

9,112

Additions

20

538

558

Transfers

–

102

102

Disposals

(123)

(106)

(229)

At March 31st 2024

5,109

4,434

9,543

Leaseholdbuildings:
short
£000

Equipment
£000

Total
£000

2,984

20,89023,874

Depreciation
At April 1st 2022
Charge for the year

684

1,832

2,516

Disposals(1,628)(19,981)(21,609)

At March 31st 2023

2,040

2,741

4,781

Charge for the year

215

754

969

–

(80)

(80)

2,255

3,415

5,670

At April 1st 2022

3,147

1,377

4,524

At March 31st 2023

3,172

1,159

4,331

At March 31st 2024

2,854

1,019

3,873

Disposals
At March 31st 2024
Carrying amounts

The Economist Group annual report and accounts 2024

133

C0mpany financial statements

Notes to the company financial statements

NOTE 7 Right-of-use assets
Leasehold buildings
£000

Cost
At April 1st 2022

24,642

Additions

10,776

Disposals(5,476)At March 31st 2023

29,942

Additions596

Disposals(868)

At March 31st 2024
Accumulated depreciation

29,670
Leasehold buildings£000

At April 1st 2022

9,232

Charge for the year

3,235

Disposals(5,444)At March 31st 2023

7,023

Charge for the year

2,874

Disposals(769)

At March 31st 2024

9,128

Carrying amounts
At April 1st 2022

15,410At March 31st 2023

22,919At March 31st 2024

20,542The company leases several assets including buildings and IT equipment. The average lease term is 62 months (2023: 30 months).
The maturity analysis of lease liabilities is presented in note 14.
The interest expense relating to right-of-use assets was £799,000 (2023: £744,000).

134

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F I N A N C I A L S TAT E M E N T S

NOTE 8 Deferred tax

Deferred tax assets
Deferred tax liabilities

2024
£000

2023
£000

1,054

3,505

–

(1,323)

1,054

2,182

Substantially all of the deferred tax assets are expected to be recovered after more than one year.
Deferred tax assets and liabilities may be offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and when the deferred taxes relate to the same fiscal authority.
The recognition of the deferred tax assets is supported by management's forecasts of the future profitability of the relevant businesses.
The movement on the deferred tax account is as follows:
2024
£000

2023
£000

At April 1st

2,182

3,459

(Charge) to income statement

(912)

(38)

(Charge) to other comprehensive income(216)(1,239)At March 31st

1,054

2,182

The movement in deferred tax assets during the year is as follows:
Retirement benefit
obligations£000

Capital allowances
and intangibles£000

Incentives
£000

Other
£000

Total
£000

2,663

–

1,039

713

4,415

–

–

339

(10)

329

(Charge) to other comprehensive income

(642)

–

–

(597)

(1,239)At March 31st 2023

2,021

–

1,378

106

3,505

–

(685)

32

(259)

(912)

(500)

–

–

284

(216)

Deferred tax assets
At April 1st 2022
(Charge)/credit to income statement(Charge)/credit to income statement(Charge)/credit to other comprehensive income
Jurisdictional netting–(1,323)––(1,323)At March 31st 2024

1,521

(2,008)

1,410

131

1,054

Other deferred income tax assets include temporary differences on general provisions of £251,000 (2023: £533,000); derivatives andfinancial instruments of £(135,000) (2023: £(449,000)); and other differences.

Deferred tax liabilities

Capital allowances
and intangibles
£000

Other
£000

Total
£000

At April 1st 2022

(956)

–

(956)

(Charge) to income statement

(367)

–

(367)

At March 31st 2023

(1,323)–(1,323)

Jurisdictional netting

1,323

–

1,323

At March 31st 2024

–

–

–

Deferred taxes recognised at the balance-sheet date are determined using the anticipated future tax rate. As the current enacted UK
corporation tax rate of 25% is expected to remain stable, the deferred tax balances are calculated using this rate (2023: 25%).

The Economist Group annual report and accounts 2024

135

C0mpany financial statements

Notes to the company financial statements

NOTE 9 Inventories

Raw materials

2024
£000

2023
£000

280

369

280

369

2024
£000

2023
£000

8,735

10,111

No inventories are pledged as security.

NOTE 10 Trade and other receivables
Current
Trade receivables
Other receivables

1,301

615

Prepayments

4,583

5,748

Accrued income

2,742

1,385

17,361

17,859Trade receivables are stated at fair value, net of provisions for expected credit losses and anticipated future sales returns. The movementson the provision for bad and doubtful debts are as follows:
2024
£000

2023
£000

At April 1st

1,370

844

Income statement movements

(579)

533

Utilised

(124)

(7)

At March 31st

667

1,370

2024
£000

2023
£000

Within the due date

7,585

6,606

Past due less than a month

1,150

1,974

–

1,531

8,735

10,111

The ageing of the company's trade receivables which are not impaired is as follows:

Past due more than a month but less than two months
Total trade receivables

136

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 11 Cash and cash equivalents

Cash at bank and in hand

2024
£000

2023
£000

1,823

1,532

8,546

16,046

10,36917,578

2024
£000

2023
£000

Trade payables

13,6089,297

Social security and other taxes

2,726

889

Accruals

20,01524,944

Short-term bank deposits

Short-term bank deposits are invested with banks and earn interest at the prevailing short-term deposit rates.

NOTE 12 Trade and other liabilities
Current

1,255

1,654

Deferred income

44,49033,103

Other liabilities

1,234

482

83,32870,369

1,343

1,166

Deferred income

1,654

1,906

Other liabilities

1,830

1,980

4,827

5,052

88,15575,421

Liability for share-based payments

Non-current
Liability for share-based payments

Total

The carrying value of the Group's trade and other liabilities approximates fair value.
The deferred income balance comprises the unexpired portion of subscriptions for The Economist and revenue billed in advance foradvertising not yet delivered.

The Economist Group annual report and accounts 2024137

C0mpany financial statements

Notes to the company financial statements

NOTE 13 Retirement benefit and other post-retirement obligations

A reconciliation of the net retirement benefit obligation reported in the balance sheet is shown in the following table:

UK Group scheme
Post-retirement medical benefits

2024
£000

2023
£000

4,939

7,062

1,144

813

6,083

7,875

The company is a member of The Economist Group Pension Scheme (UK Group Scheme), which provided funded defined benefits.
Details about the assets and liabilities of the scheme, the major assumptions used by the actuaries to value the deficit, the funding of the
deficit in the scheme and the risks the company is exposed to through the scheme are included in note 23 to the consolidated financial
statements. The company accounts for its share of the underlying assets and liabilities of the scheme. The company's share of the total
scheme deficit was assessed at 80% by an independent actuary. The calculation of the liability for the company is based on membership
records of retirees, deferred and active members.
The company also operates a defined-contribution scheme.
The company provides post-retirement medical benefits to certain former employees. At March 31st 2024, 20 retired and former
employees (2023: 23) were eligible to receive benefits. The movement in the liability was as follows:
Present value of scheme liabilities

2024
£000

2023
£000

At April 1st

813

976

Employer contributions

(79)

(90)

Interest expense

35

26

Net loss/(gain) from experience and change in financial assumptions

375

(99)

At March 31st

1,144

813

Further information on the assumptions used to calculate the liability are shown in note 23 to the consolidated financial statements.

NOTE 14 Lease liabilities
2024
£000

2023
£000

Not later than one year

2,950

3,516

Later than one year and not later than five years

14,918

13,954

Maturity analysis:

8,748

12,506

26,61629,976

Non-current

23,666

26,460Current

2,950

3,516

26,61629,976Later than five years
Analysed as:

138

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

NOTE 15 Borrowings

Details of the Group's borrowings, which are also those of the company, can be found in note 21 to the consolidated financial statements.

NOTE 16 Derivative financial instruments

Details of the Group's derivative financial instruments, which are also those of the company, can be found in note 24 to the consolidated
financial statements.

NOTE 17 Share capital

Details of the company's share capital can be found in note 27 to the consolidated financial statements.

NOTE 18 Employee Share Ownership Plan (ESOP)

Details of the ESOP are presented in note 28 to the consolidated financial statements.

NOTE 19 Treasury shares

Note 29 to the consolidated financial statements provides information on the company's treasury shares.

NOTE 20 Related party transactions
Subsidiaries
The company transacts and has outstanding balances with its subsidiaries. Amounts due from subsidiaries and amounts due tosubsidiaries are disclosed on the face of the company balance sheet.
Shareholders
There were no material related party transactions with any shareholders during the year. In the view of the Directors, there is nocontrolling party of the company or the Group, by virtue of there being no single majority shareholder.

NOTE 21 Events after the balance-sheet date

There were no material events after the balance-sheet date.

The Economist Group annual report and accounts 2024

139

C0mpany financial statements

Notes to the company financial statements

NOTE 22 Group companies

In accordance with Section 409 of the Companies Act 2006, a full list of subsidiaries, the country of incorporation and the effective percentageof equity owned included in these financial statements at March 31st 2024 is disclosed below. The shares in these companies are included in the
consolidation in the Group's financial statements using the equity method of accounting. Principal Group companies are identified in bold.
Company

Proportion
held

Principal activity and operation

Country ofincorporation

Bazian Limited

100%

Healthcare consulting

United Kingdom

Clearstate (Pte.) Limited1

100%

Healthcare consulting

Singaporedata information intelligence GmbH2

100%

Information services

Germany

Economist (Shanghai) Management Consulting Company Limited3†

100%

Publishing, events and information services

China

Economist Digital Services Limited

100%

Digital service provider

United Kingdom

EIU (Delaware) LLC4

100%

Consulting services

US

EuroFinance Conferences Limited

100%

Events and training

United Kingdom

Ryder Street Properties Limited

100%

Dormant

United Kingdom

Signal & Noise Limited

100%

Data design agency

United Kingdom

TEG India Private Limited5100%

Events and media services

India

TEG New Jersey, LLC4

100%

Dormant

US

The Economist Books Limited

100%

Dormant

United Kingdom

The Economist Editorial (Overseas) Company Limited

100%

Representative agent

United Kingdom

The Economist Group (Asia/Pacific) Limited6

100%

Events and information services

Hong Kong

The Economist Group (Brazil Holdings) Limited

100%

Investment holding company

United Kingdom

The Economist Group (Investments) Limited

100%

Investment holding company

United Kingdom

The Economist Group (Switzerland) SA7

100%

Media services

Switzerland

The Economist Group do Brasil Serviços de Informação sobre Negócios Ltda8† 100%

Business information

BrazilThe Economist Group France SARL9100%Media services

FranceThe Economist Group GmbH10

100%

Investment holding company

Austria

The Economist Group Limited

100%

Business information

United Kingdom

The Economist Group Operations Limited

100%

Investment holding company

United Kingdom

The Economist Group (Services) Limited

100%

Dormant

United Kingdom

The Economist Group Singapore Pte Limited1

100%

Investment holding company

Singapore

The Economist Group Trustee Company Limited

100%

Trustee services

United Kingdom

The Economist Intelligence Unit Canback SA Proprietary Limited11†

100%

Dormant

South Africa

The Economist Intelligence Unit Limited

100%

Information services and events

United Kingdom

The Economist Intelligence Unit, NA, Incorporated4

100%

Events and information services

US

The Economist Newspaper (Asia/Pacific) Limited6

100%

Dormant

Hong Kong

The Economist Newspaper Group Incorporated4

100%

Publisher and management services

US

The Economist Newspaper (Holdings) Limited*

100%

Investment holding company

United Kingdom

The Economist Newspaper, NA, Incorporated4100%

Media services

US

The Economist Overseas (Holdings) Limited

100%

Investment holding company

United Kingdom

The Economist Pension Trustee Limited

100%

Pension trustee company

United Kingdom

The Television Consultancy Limited

100%

Dormant

United Kingdom

TVC Group Limited

100%

Investment holding company

United Kingdom

140

The Economist Group annual report and accounts 2024

F I N A N C I A L S TAT E M E N T S

Unless noted, the registered office is The Adelphi, 1-11 John Adam Street, London WC2N 6HT.
All companies are indirectly owned by The Economist Newspaper Limited except for those indicated*, which are directly owned.
† Year-end December 31st
1 8 Cross Street, #23-01 Manulife Tower, Singapore 048424
2 Schwagrichenstrasse 8, 04107 Leipzig, Germany
3 Rm 2508B, 1909-1910 Rui Jin Building, No. 205 South Mao Ming Road, Huangpu District, Shanghai, China 200020
4 900 Third Avenue, New York, NY 10022, USA
5 17, Subhash Marg, Darya Ganj, New Delhi 110002, India
6 1301, 12 Taikoo Wan Road, Taikoo Shing, Hong Kong
7 Rue de la Rotisserie 11-1204, Geneva, Switzerland
8 Rua Joaquim Floriano 1052. cj. 81, CEP 04534-004, São Paulo, -SP, Brazil
9 11 Avenue Delcassé, 75008 Paris, France
10 Gonzagagasse 17, 1010 Wien, Austria
11 Inanda Greens Building 8, 54 Wierda Road, West Wierda Valley, Sandton, Gauteng, 2196, South Africa
For the year ended March 31st 2024, the following subsidiary undertakings of the Group were exempt from the requirements of theCompanies Act 2006 relating to the audit of individual accounts by virtue of section 479A of the Companies Act 2006:

Company

Principal activity and operation

Company
registration
number

The Economist Books Limited

Dormant

01775942

The Economist Group (Brazil Holdings) Limited

Investment holding company

09164810

The Economist Group Trustee Company Limited

Trustee services

01775932

Bazian Limited*

Healthcare consulting

03724527

Economist Digital Services Limited*

Digital service provider

09282716

Eurofinance Conferences Limited*

Events and training

03015764

Ryder Street Properties Limited*

Dormant

00626084

Signal & Noise Limited*

Data design agency05842108

The Economist Editorial (Overseas) Company Limited*

Representative agent

03312640

The Economist Group Limited*Business information

02642807

The Economist Group (Services) Limited*

Dormant

10429178

The Economist Group (Investments) Limited*

Investment holding company

04319845

The Economist Newspaper (Holdings) Limited*

Investment holding company

10304105

The Economist Overseas (Holdings) Limited*

Investment holding company

02147173

The Economist Pension Trustee Limited

Pension trustee company

14065151

The Television Consultancy Limited*

Dormant

03588331

TVC Group Limited*

Investment holding company

06618821*At the balance sheet date the outstanding liabilities of these subsidiaries have been guaranteed by The Economist Newspaper Limited pursuant to section 479A to section 479C of theCompanies Act 2006.

The Economist Group annual report and accounts 2024

141

Financial statements

Five-year summary

2024
£m

2023
£m

2022
£m

2021
£m

2020
£m

Revenue

367

377

346

310

326

Operating profit

47

42

46

42

31

As reported in the year

Profit after tax
Basic earnings per share

34

31

36

17

21

171.6p157.0p180.9p83.8p106.5pContinuing business*
Revenue

367

377

346

310

320

Operating profit

47

42

46

42

53**

Profit after tax

34

31

36

17

42**

Revenue

367

377

346

310

320

Adjusted operating profit

47

42

46

42

33

12.9%

11.2%

13.4%

13.5%

10.3%

34

31

36

31

22

171.6p157.0p180.9p155.3p110.0pContinuing business—adjusted***Adjusted operating profit to revenue
Adjusted profit after tax
Adjusted earnings per share
Balance Sheet
Non-current assets

83

90

85

74

158

Net debt

(5)

(18)

(16)

(30)

(119)

Deferred income

(128)

(131)

(128)

(120)

(119)

Other assets and liabilities (net)

(19)

(17)

(26)

(15)

(18)

Net liabilities

(69)

(76)

(85)

(90)

(98)

Interim and final dividend proposed per share

160.0p120.0p120.0p100.0p40.0p

Total dividend per share paid in the year

120.0p127.0p133.0p0.0p115.0p

Indicative share value***£31.50£30.00£30.00£25.00£23.00

5.1%

4.0%

4.0%

4.0%

1.7%

Dividends and shares

Dividend yield*Income statement restated to exclude TVC and Canback, closed in 2021.

**Includes an exceptional defined-benefit pension scheme credit on the closure of the scheme to future accrual.
***Alternative performance measures. Refer to note 1s of the consolidated financial statements for further information.

Alternative performance measures

The Group uses alternative performance measures in order to monitor the performance of the business. We present these as we believe
they are useful to the users of the accounts; they include adjusted operating profit, indicative share value and adjusted earnings per share.
Adjusted earnings and adjusted earnings per share are stated before exceptional items and profit/loss on disposal of businesses together
with the related interest and tax effects.
The indicative share price is calculated by our independent valuation adviser. Our adviser uses a number of criteria, including the Group’s
financial position and the performance of comparator companies to calculate an indicative share price and valuation. The indicative shareprice is used for the purpose of measuring the performance of the business and administering the ESOP and RSS schemes.

142

The Economist Group annual report and accounts 2024

Notice of annual general meeting
Notice is hereby given that the annual general meeting (AGM) of The Economist Newspaper Limited will be held at the British Academyof Film and Television Arts, 195 Piccadilly, London W1J 9LN on Tuesday July 9th 2024 at 12.15pm, for the purposes set out below.
1.	To receive the accounts and the reports of the directors and the auditor for the year ended March 31st 2024.
2.	To declare a final dividend of 120.0 pence per share in respect of the year ended March 31st 2024 to all “A” Special, “B” Special andOrdinary shareholders on the company’s register of members at the close of business on June 10th 2024.
3.	To reappoint Deloitte LLP as the company’s auditor to hold office until the conclusion of the next general meeting at which accounts
are laid before the company.
4. To authorise the directors to fix the remuneration of the auditors.
By order of the Board
Oscar GrutChief legal officer
Group company secretary and head of ESG
Registered in England and Wales 00236383
Registered Office
The Adelphi
1-11 John Adam Street
London WC2N 6HT
June 18th 2024
NOTES:
1.	A member entitled to attend and vote at the AGM is entitled to appoint one or more proxies to exercise all or any of his/her rights
to attend, speak and vote at the meeting. A member can appoint more than one proxy in relation to the meeting, provided that eachproxy is appointed to exercise the rights attaching to different shares held by him/her.
2.	A Form of Proxy is enclosed and the notes to the form set out the details of how to appoint a proxy.
3.	To be valid, shareholders must complete the Proxy Form and submit it in accordance with the instructions printed on the form so as
to be received by the Company’s registrars, Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol BS99 6ZY
no later than 48 hours before the meeting or, if the meeting is adjourned, no later than 48 hours before the adjourned meeting.
Proxy appointments and voting instructions can now be submitted:• Electronically, through www.investorcentre.co.uk/eproxy; or• In hard copy, by posting the duly completed and signed form proxy to Computershare Investor Services PLC, The Pavilions,
Bridgwater Road, Bristol BS99 6ZY.
Whether or not you intend to attend the AGM, please submit your form of proxy electronically or in hard copy as soon as possible.

The Economist Group annual report and accounts 2024

143

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