UBM Feels Tech Advertising Slump
United Business Media (UBM) has this morning described how the worsening hi-tech advertising market is affecting its CMP Media publishing division.
In the year to April, CMP recorded a cumulative 6.9% decrease in advertising page volumes. The market as a whole declined by 19.0%, including a 41.4% decrease for the General Business/New Economy subsector, said UBM.
However, some titles have started to show a slight improvement. Information Week and Electronic Buyers News were down 29.2% and 2.2% respectively in April, comparing favourably with 31.0% and 21.5% declines during March.
As a result of the downturn, analysts at ABN Amro expected CMP’s full year profits to be some 40% down on the previous year. Hi-tech advertising accounts for around 30% UBM’s profits.
Even though UBM stock is trading at a per-earnings discount to peer groups like VNU, Reed Elsevier and Pearson, the continued effect of the ad slowdown justifies this, says ABN.
At 9:45am today shares in UBM were up 13½ at 718½p.
ABN Amro: Reduce
