United News and Media has announced that its profits for the year are likely to be in line with expectations, thanks in part to the disposal of £3.25bn of its consumer media assets. As a result it has confirmed that the company will be renamed United Business Media from Monday 18 December, and will restructure its strategy accordingly.
As part of its new strategy, the company will only invest £60m during 2001 in new media, compared to £120m this year. Disposal of consumer-related interests has already begun to take place, and whereas this year’s investments have embraced both consumer and business ventures, next year investment is to be directed towards business-to-business opportunities. It is felt that these ventures will offer the best chance of success and profitability in the short, rather than medium, term. United may also seek partnerships and alliances to support its investment in these areas.
A further measure in the restructure will be to rationalise the new media division and rename Xilerate, United Business Media International. Under CEO Andrew Nugee, it will focus on the trade shows, professional magazines and online activities which used to form the business to business operation of Xilerate.
