United Business Media Sees Operating Profit Jump By 52%
United Business Media has today announced that operating profit was up nearly 52%, pushed on by a significant turnaround from its technology and health care division, CMP Media.
In a statement released this morning, UBM said for the six months ending 30 June 2004 that most of its businesses performed strongly, driving pre-tax operating profit up by 51.9% year-on-year to £63.8 million.
Profitability at CMP Media rose by 142.9% from £4.9 million on the same period last year to £11.9 million, along with UBM’s business-to-business division, CMP Information, which saw operating profit rise by 57% to £16.8 million.
After suffering from the negative effects of SARs, profits at CMP Asia made a strong recovery and remained relatively unchanged when compared to last year at £6.3 million, while United Advertising Publications saw profits slide by 25% to £6.7 million caused by a drop in revenues from the Exchange & Mart publication coupled with new product investments.
Chief executive, Clive Hollick, said: “Good underlying revenue growth in all of our businesses lifted operating profit by 52%. This revenue growth and the continuing drive for operating efficiencies has boosted margins to 16.8% – ahead of our 15% medium term margin target.”
Looking ahead, Hollick added: “The steady improvement in our revenues is expected to continue into the second half of 2004. We plan progressively to increase the level of investment in new products and with a strong balance sheet and cash flow, are well placed to continue to acquire businesses that are strategically compelling and meet our exacting financial criteria. The combination of increasing revenues and operating efficiencies leaves United well placed to continue to deliver strong profit growth.”
UBM: 020 7921 5000: www.unitedbusinessmedia.com
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