UBM BUOYED BY INCREASED EMERGING MARKETS EXPOSURE

Twitter Facebook Google+ LinkedIn
WORLD – United Business Media's ties in the emerging markets have helped stem the decline in its events business according to company results for the year ended 31 December 2009.While overall revenue for the organiser and media company declined by almost £40m to £847.6m, and adjusted operating profit dropped to £171.2m from £173.5m, the company’s events business saw revenues drop by just 1.5 per cent, a fraction of the decline experienced by its competitors. By comparison, Reed Exhibitions experienced a year-on-year revenue downturn of 21 per cent, and Informa saw a revenue decline of 27 per cent.UBM’s events division now accounts for 51 per cent of adjusted operating profits, up on 47 per cent the previous year. The company attributes the halt in events business decline in part to a “very strong” second half of the year in terms of biennial tradeshow performance, with revenues up 55 per cent on 2007.UBM CEO, David Levin, pictured, said UBM has “reshaped” its businesses towards market opportunities “that provide sustainable growth revenue streams”. "Our events business traded well in 2009, contributing more than half our adjusted operating profits and demonstrating the growing importance of market-leading face-to-face events in the digital age,” he said. The company recently announced its acquisition of the UK event E Commerce Expo to boost its presence in the e-commerce, internet retailing and digital marketing sectors. “Our large tradeshows fared particularly well with our top 20 annual events - which contribute around half of our events revenue and over two thirds of our events adjusted operating profits - growing nearly 12 per cent,” added Levin. “As expected our second half biennial shows in Asia and Europe were notably strong."Levin explains that much of UBM’s effort over the past year was in progressing the company’s long-term strategy to build its business in emerging economies. The strategy, he claims, is proving successful, with China, India and Brazil now contributing more than a fifth of UBM's adjusted operating profits and nearly 14 per cent of its revenues, representing revenue and adjusted operating profit growth of more than 35 per cent.UBM’s revenues from the rest of Asia Pacific, Latin America, Africa and Middle East amounted to a further £41m, up 17.1 per cent on 2008. These territories contributed 4.5 per cent of UBM's adjusted operating profits in 2009. The figure for 2008 was three per cent."We go into 2010 with our strategy clearly defined and with the operational and financial resources in place to implement that strategy,” summarised Levin. “Despite the tentative and uneven economic recovery we see across our markets, we believe we are very well positioned for profitable growth in the medium term."In related news, UBM has resolved its decade-long dialogue with the UK tax authorities over the tax payable on the sale of its regional newspapers business in 1998. “We have agreed to make a payment of £46.5m in settlement of this and a number of other tax issues. This, together with the resolution of a number of other tax matters, has resulted in a release of £135.2m of our previous tax creditor," said Levin.
Twitter Facebook Google+ LinkedIn

Related Stories

Elsewhere on EN

Eventcity to host Digital Kids Show

Eventcity to host Digital Kids Show

Manchester has been chosen to host a line-up of famous YouTubers in November, as part of the all-inclusive family day out Digital Kids Show.
Successful 2nd outing for ChileCare Expo Manchester

Successful 2nd outing for ChileCare Expo Manchester

On 16-17 June, Childcare Expo Manchester opened its doors for the second time for its return at EventCity, welcoming 1,686 visitors to the venue.
Messe Frankfurt records highest ever result in 2016

Messe Frankfurt records highest ever result in 2016

Trade fairs are still going from strength to strength in Frankfurt 777 years after the first event of this kind was held there, with sales of over €650m planned in 2017

The Showlite Heroes

Most read Stories

And the #ENAwards finalists are…

And the #ENAwards finalists are…

The countdown timer has run out. After weeks of companies submitting award entries and sweating over it, there is just one thing left to do before the big night: Announce the shortlist.
RDS launches RDS Venue brand

RDS launches RDS Venue brand

Philanthropic organisation the Royal Dublin Society (RDS) has announced that RDS Venue will be launched as a separate visual identity from the main RDS brand.
EN Awards People Finalists revealed

EN Awards People Finalists revealed

The first group of the highly anticipated shortlist for the EN Awards has been announced, including Best Newcomer and Best Event Director categories.

Latest Features

Lights up

Lights up

As Showlite celebrates its 25th birthday, founder Paul Wicks looks back on the company’s history and reflects on the industry.
Waste not, want not

Waste not, want not

Soraya Gadelrab, portfolio director – food, drink & packaging at Fresh Montgomery, on the organiser’s partnership with charity City Harvest.
Right on the money

Right on the money

After teaming up with Prysm Group to run Accountex 2016, Diversified Communications has taken the reins for this year’s show.

Latest Galleries

London Dungeon Lates

London Dungeon Lates

The London Dungeons has launched a unique nighttime experience with the theme of the seven deadly sins. The adults only tour includes seven themed food offerings and a range of themed drinks.
This Morning Live

This Morning Live

Tens of thousands of fans descended on the NEC on 18-21 May for This Morning Live, to see talent from ITVs award-winning daytime programme arrive in style.
Ideal Home Show Scotland

Ideal Home Show Scotland

The Ideal Home Show return to Glasgow for its 70th Anniversary on 26-29 May, introducing the all-new Eat & Drink Festival to Scottish fans.

Latest Opinions

National mourning

National mourning

Mark Blair, divisional director of InEvexco, considers the insurance implications of the death of a monarch.
David's Inferno: The comfort zone

David's Inferno: The comfort zone

In the first of his new series of monthly columns, Cvent’s senior marketing director David Chalmers says it’s important to break out of the comfort zone.
Show or tell?

Show or tell?

Roopi Woodall, marketing manager at the QEII Centre, asks if the art of conversation on social media is dead – and how to engage with audiences if that’s the case.