Hi-Tech Advertising Deterioration Continues, Hammering CMP Media’s Profits
The US hi-tech publishing advertising market continued to deteriorate throughout September, according to the latest in a series of updates (see Hi-Tech Ad Volumes Show Further Deterioration In US, According UBM) from United Business Media (UBM) this morning.
Once again UBM pointed to increases in CMP’s market share, this time up from 26.3% to 28.5% year on year for September, as evidence of its strong position ultimately and its ability to outperform the albeit very poor market presently.
In the full year to September, CMP Media saw ad page volumes fall by 21.8%, as against a 31.7% decline for the whole market (including a 56.8% decrease for the general business/new economy sub-sector). Over the year, CMP’s share increased from 25.0% to 28.6%.
| US hi-tech publishing advertising page volumes, September 2000/2001 | |||||
| 2000 pages | 2001 pages | % Change | 2000 market share | 2001 market share | |
| CMP Media | 4,492 | 2,527 | -43.8 | 26.3 | 28.5 |
| Total market | 17,061 | 8,853 | -48.1 | 100.0 | 100.0 |
| Source: United Business Media, 01/11/01 | |||||
There is no improvement in the hi-tech advertising market in sight, according to analysts at ABN Amro. The broker expects CMP Media’s revenues to be off 25% in 2001, whilst profits decline by a huge 80%. Next year, revenues are forecast to fall by a further 15%, leading to a complete erosion of operating profit at the business.
ABN has reduced its 2001 headline pre-tax profit forecasts for UBM by 16% from £111 million to £93 million; 2002 figures have been revised down 10% from £106 million to £95 million.
Shares in UBM were up 4p at 442p by mid-morning today.
