2005 News Releases
United Business Media - Interim Results for the Six Months ended 30 June 2005
27 July
POSITIONING FOR GROWTH
STRONG FIRST HALF PERFORMANCE
Financial Highlights for Six Months Ended 30 June 2005
Headline Results
| Revenue | Up 19.7 per cent | to £336.6m (£281.1m) | ||
| Operating profit* | Up 23.3 per cent | to £76.1m (£61.7m) | ||
| Profit before tax* | Up 30.1 per cent | to £81.3m (£62.5m) | ||
| EPS** | Up 50.4 per cent | to 21.2p (14.1p) | ||
| Dividend | Up 10.2 per cent | to 4.00p (3.63p) |
- Acquisitions performing ahead of plan
- £67m invested in acquisitions in 2005
- 38 organic new product initiatives, 20 underperforming products closed
- £418m proceeds from disposals, £267m profit on disposals
- £311.6m of capital distributed to investors via special dividend and buyback
- Net debt of £(0.2)m at period end
** Before amortisation of intangible assets, non-recurring items, other financial income other than interest and including discontinued operations
Statutory Results
| Revenue | Up 19.7 per cent | to £336.6m (£281.1m) | ||
| Operating profit | Up 33.0 per cent | to £66.5m (£50.0m) | ||
| Profit before tax | Up 613.8 per cent | to £362.6m (£50.8m) | ||
| EPS | Up 653.2 per cent | to 106.2p (14.1p) | ||
| Dividend | Up 10.2 per cent | to 4.00 (3.63p) |
David Levin, Chief Executive of United Business Media, said:
"UBM delivered a strong overall performance in the first half of 2005, including the first time impact of the mid 2004 acquisition of CMPMedica.
CMP Asia and PR Newswire both performed well - at both the revenue and operating profit levels. CMPi (excluding UAP) delivered a solid revenue growth performance and investment in new product development was stepped up. UAP saw some impact from the slowdown in the UK markets but achieved positive momentum in online. Integration of these CMPi and UAP businesses is progressing well with good prospects across the UAP titles being brought into CMPi. CMPMedica's performance was split by geography, with strength in its important French market but softness in Asia-Pacific trade press. CMP Media saw little change in its recent performance trends.
In order to focus the business and to crystallise value created for investors, UBM has either sold, or agreed to sell, three major assets in 2005 - and we are working on the sale of our UK auto titles. This makes UBM an increasingly focused business. UBM is now a leading global provider of news distribution and specialist information services for the professional and enthusiast markets, actively bringing buyers and sellers together across targeted media channels - publications, events and online. Following the disposals UBM has returned over £310m of capital to shareholders - via a special dividend and also an open market buyback programme.
In 2005 UBM has invested £67m in seven acquisitions, building the business by significantly strengthening positions in attractive end markets. Integration of the acquisitions is progressing well and they are performing according to plan. Internally 38 new organic product development initiatives are underway and 20 underperforming products have been closed down. The business has been further reshaped by changes in the management reporting structure designed to align the structure of UBM's management and UBM's cost base with the geographical needs of customers and their marketplaces.
UBM is a great business with many strong market positions in specific verticals. We are steadily working at making those positions even stronger. In my first four months I have been directly engaging with many of our major customers. I have been encouraged both by the strength of the existing relationships and also by the evident potential UBM has to add more value.
Outlook
The overall operating profit performance outlook for the second half is broadly in line with the first half - subject to the first half weighting of CMPMedica. Solid booking levels and new investment are encouraging us to expect higher levels of underlying revenue growth. This will be offset at the operating profit level by measured increases in development spend - around the upper end of the £5m to £10m previously announced for 2005.
While print remains challenged, the events businesses in particular have strong forward bookings and are looking healthy, and CME bookings have improved in the US. Online revenue is set to continue to increase."
For further information please contact:
For United Business Media enquiries:
| Michael Waring | United Business Media | 020 7921 5031 |
| Colin Browne | The Maitland Consultancy | 020 7379 5151 |
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Notes to Editors:
UNITED BUSINESS MEDIA
Background
United Business Media plc (http://www.unitedbusinessmedia.com)
UBM is a market leading global provider of specialist business information services to
the technology, healthcare, media & entertainment , property and financial services
industries. Geographically revenues are generated in Europe (39%), the US (51%)
and in Asia (10%).
Customers
UBM's market leading - typically ranked number one or two - products serve top
blue chip clients in all their end markets including:-
Microsoft, Hewlett Packard, IBM, Astra Zeneca, Forest Laboratories, Pfizer/Pharmacia,
Merck & Co, GlaxoSmithKline, Novartis, Cisco, Toyo Shinaku, India Trade Promotions
Organisation, China Chamber of Commerce, Sinopharm, Incase, Edelman
Worldwide, Porter Novelli, Fleishman Hillard, NASA.
Product Categories
Publications
- Over 160 magazines, 110 countries, 4m readers, 4,500 advertisers
Events
- Over 300 events, 1.3m visitors, 2,500 exhibitors, from 120 countries
Directories
- Over 50 directories, over 750 thousand recipients, in over 40 countries
Online
- Over 200 websites, 22 million page impressions, revenue up over 35%
News Distribution
- Over 180,000 messages, in 135 countries, in more than 150 languages
- Over 460,000 journalists, monitoring message boards with over 25m users
Product Brands
CMP Media
www.cmpmedia.com
Information Week, CRN, EE Times, Network Computing, VARBusiness,
TechWeb, Consultant Magazine, Game Developer Conference, Embedded
Systems Conference, Xchange Conferences, Guitar Player, Health & Beauty
America, Seatrade Cruise Shipping Convention.
CMP Information
www.cmpinformation.com
CPHI, Building, Furniture Show, Property Week, Farmer's Guardian, FIE, Ifsec,
Health & Safety, Pulse, Daltons Weekly, Trade It, Trader, Opportunities,
Private Villas, This Caring Business, ECM.
CMPMedica
www.asia.cmpmedica.com
Vidal, Journal du Medicin, Gelbeliste, Vademecum, Medical Observer,
Carnets de Sante, MIMS, Kassenarzt, Medex, MedServe.
CMP Asia
www.cmpasia.com
Asia Pacific Leather Fair, Cosmoprof Asia, Hong Kong Jewellery and Watch
Fair, Health Industry News, Jewellery News Asia, Tokyo Intnl Health Industry
Show.
PR Newswire
www.prnnewswire.com
MultiVu, MediaAtlas, eWatch, Profnet, US1.
