ABN Downgrades CMP Media As Hi-Tech Advertising Continues To Fall
The deterioration of the US hi-tech advertising market is continuing according to analysts at ABN Amro who have today downgraded their forecasts for United Business Media’s hi-tech publishing group, CMP Media, accordingly.
Revenues at CMP are now expected to fall by 23% in 2001, with profits down by a huge 72%. In 2002, revenues are forecast to drop by a further 15%, leading to a ‘virtual disappearance of operating profits’ at CMP.
The broker cites data from the Publishers Information Bureau (PIB) which show that technology industry advertising volumes have halved during the summer months. As has been previously stated, the gains in market share mean that the impact of this decline on CMP will be less severe than it is for many of its competitors (see Hi-Tech Ad Volumes Show Further Deterioration In US, According UBM).
At 4:00pm today shares in United Business Media were down 23½ at 391½p.
