Profits Halve At UBM After US Hi-Tech Advertising Slump
Pre-tax profit at United Business Media (UBM) was down by 48% year on year for the six months to 30 June 2001, impacted by the downturn in hi-tech advertising revenues at its CMP Media publishing business in the US.
“Trading conditions in the first six months of the year have been extremely tough with weakness in the technology market exacerbated by a deteriorating trading environment in the US,” said chief executive Clive Hollick. He added that current market conditions remain “very challenging and our planning assumption is that there will be no upturn in the US this year.”
Business in the US accounts for around three quarters of UBM’s profits now that it has divested of the television and newspaper interests it held as United News & Media. Its CMP Media hi-tech publishing business has been particularly hard hit by the economic slowdown there.
The company says that ‘firm action’ on costs has delivered £15 million in savings in first half; employee numbers have been reduced by over 700 and the actions taken will result in £60 million savings in 2001.
