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Real IR: 2006 Review
14/12/2006
Rumours of takeovers and new regulations meant IROs had a heavy
workload in 2006. Embracing new technology could make their jobs
easier.
By Dawn Cowie and Scott Payton
Online
Three factors have shaped European IR teams’ use of and attitudes towards online communications this year:
New regulations.
New technology.
Merger and acquisitions activity.
ON THE REGULATORY FRONT, the imminent arrival of the Transparency Directive has focused IR teams’ minds on using the internet to ensure that market-sensitive information is distributed simultaneously across the European Union.
“It’s an issue that will play out more throughout 2007,” says Rupert Spiegelberg, a director at Investis, an online communications firm.
Meanwhile, another recent EU regulation, the Prospectus Directive, now enables firms to issue bonds simultaneously across the EU (see page 24). According to Peter Kemp, managing director of online IR specialist Global IR, this is set to lead to an increase in the use of online communications aimed at bond holders and credit analysts. “Very few sites yet have a bond IR section,” says Kemp. “But this is set to change in the near future.”
New regulations, and socio-political pressures, have also played a part in the growth of online corporate social responsibility (CSR) communications. As Rosie Catherwood, a director at corporate communications provider Cantos, points out, spending on online CSR content tends to come out of a budget that is shared across a firm’s communication departments.
THE GROWTH OF ONLINE CSR content brings us neatly to another online trend of 2006: the coming of age of multimedia technology – audio, video and so on. A growing number of companies are using “online documentaries” to bring corporate responsibility programmes, new business strategies and other “non-financial” issues to life for investors and analysts.
Blogs are another online innovation to grab the attention of IR teams this year – though few IR departments are actually using them in their IR strategy. “In my view, blogs are really useful for internal corporate communications, rather than external communications,” says Kemp.
IR teams are, however, keen to get to grips with how blogs run by other organisations or individuals are affecting the reputation of their company. “IR managers are asking: ‘how can I handle this? How can I control it?’,” says Spiegelberg.
Podcasts are another online technology to appear on IROs’ radar. Cantos, for example, now podcasts its clients’ IR interviews via its web portal, while a large number of European IR teams are expected to adopt the technology for communications next year.
ONLINE IR COMMUNICATIONS have not escaped the effects of the dramatic increase in merger and acquisitions activity this year. According to Catherwood, UK quoted companies are much more ready and willing than their banking and legal advisers to use a “micro-site” to keep investors, analysts, journalists and others up-to-date about a bid. Interestingly, Catherwood adds that German banks and law firms are more open about using the internet in this way than their UK counterparts.
As investors’ and analysts’ interest in non-financial issues continues to grow, the line between the “IR section” of a corporate website and other sections is getting increasingly blurred. “It’s very rare that you talk to the IR department only about the IR section of a site,” says Spiegelberg. “The ‘About Us’ section, the CSR section and so on are all also relevant to investors and analysts.”
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