Continuing Tough Market Hits UBM Profits
The challenging advertising market continues, according to the first half financial results statement from United Business Media (UBM) released this morning. The group’s chief executive, Clive Hollick, said that there has been “no let-up in the difficult market conditions”.
UBM has taken substantial further action to offset the impact of the tough trading conditions on earnings by setting in place cost-reduction procedures. This should save an additional £55 million, the group announced today.
Regional performance The UK, Asian and European businesses are performing well, with underlying profits up 68.2%. In the US meanwhile, revenues have been much weaker at the company’s NOP, PR Newswire and CMP Media divisions. CMP saw revenues decline by 38% in a particularly tough hi-tech publishing market (see Technology Ads Still Tough For UBM).
In order to turn CMP Media’s figures around, UBM has reduced staff levels by around 40%. It says that CMP is now ‘well geared to an upturn in its marketplace.’
Outlook The outlook for the UK, European and Asian businesses remains encouraging. The outlook for the US businesses is mixed, with continuing pressure on revenues and no upturn anticipated during the rest of 2002, says the statement.
Shares in United Business Media were down 21p at 293p by mid-morning.
