The tough advertising conditions in the US hi-tech market were largely responsible for a 24% decline in 2002 pre-tax profits at United Business Media (UBM), according to the group’s financial results released today.
Overall group pre-tax profits, before goodwill and exceptionals, were down from 2001’s £95.9 million to £72.9 million last year. However, regionally, the European and Asian businesses saw profits rise by almost a third, whilst profits at the US businesses plummeted by 58% from £47.7 million to £20.0 million.
The results also show that continuing group revenue and operating profit fell by 14.7% and 20.6% respectively. The figures are in line with analyst expectations (the tough hi-tech publishing market conditions in the US have been monitored on a monthly basis by UBM and so will come as no surprise to observers).
The group’s CMP Media division operates in this market and has seen its total advertising page volumes fall by 26.2% for the full year 2002 (continuing titles fell by 19.1%). The total business information technology market was down by 29.2%.
Outlook
“Trading conditions continue to be tough in 2003 … The outlook for revenue has been clouded by growing corporate uncertainty in the face of geopolitical concerns. Against this difficult background we will strive to manage our cost base in line with actual revenues,” said chief executive Clive Hollick.
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