Reed and Emap financials stress stronger exhibition markets ahead
19-Nov-10by Annie Byrne
Reed Elsevier has confirmed it expects slightly lower profit margins this year but stronger exhibitions business. The Anglo-Dutch publisher and exhibition organiser reported growth in new sales in the US market, although sales in its exhibition division were down on last year. However, that growth had returned in the second half, it stated. City analysts said Reed Elsevier was slow to respond to economic recovery as corporate subscriptions come up for renewal only periodically, and are worth less as firms employ fewer staff. In a statement, Reed said its exhibitions business, the world’s largest and which includes the annual Mipcom entertainment fair and the Vienna Auto Show, was “stabilising”. The company added it was expecting overall growth for the year in its exhibitions division. Meanwhile Emap’s exhibition division, Emap Connect, has reported a robust first-half to 30 June, with an upturn in profitability. The International Advertising Festival (Cannes Lions) was highlighted as a strong performer, reporting a 23 per cent rise in revenue and 27 per cent profit increase year-on-year. 2010 delegate and entry volumes also increased 44 per cent and seven per cent respectively, illustrating returning confidence in the advertising market, the company claimed. Revenue across the organiser’s UK Spring Fair was slightly lower but mitigated by cost management initiatives and a 36 per cent increase in footfall, while revenue and profit on its British Educational Training and Technology Show (BETT) were increasing, Emap stated. The organiser is launching its first Abu Dhabi BETT exhibition in November. The fashion tradeshow Pure Spring also brought in more revenue in 2010 and chalked up record visitors, Emap claimed. The company added this success had carried through to its sister Autumn event. Emap’s total operating profit across Connect, Insight, Inform, Networks and Emap Middle East was £52.1m on revenues of £135.5m.