| Thu, May 07, 2009 |
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Earnings: UBM’s Online Data Revenue Grows; Print And Web Ads Falter
All publishers are keen to point out they are trading well in the recession wherever possible and B2B magazine and online publisher United Business Media (LSE: UBM) is no exception. In an interim management statement UBM says that profits will be in line with its expectations for 2009 despite “volatile trading conditions” in many of its markets. The company made 48 percent of its profits from events last year and after years of reducing its exposure to print it will make just 10 percent of profits from magazines this year. Even so, the company expects to make lower returns from some of its print and online assets this year.
—Online data up, print subs down: UBM makes about 18 percent of it profits from subscription-only online data services such as paper industry feed RISI and construction contract service ABI Barbour and the company says the division is set to return a higher percentage of profits and higher overall profits in 2009 compared to last year. But, UBM is suffering revenue declines in online banner advertising and for its print directory businesses both of which are expected to cause a shortfall of between £5 million and £10 million from total predicted revenues of £250 million.
—M&A opportunities: After slowing its rate of making acquisitions in 2007 and 2008 because of inflated prices, UBM says it continues “to be presented with numerous acquisition opportunities”. But, without naming any names, it believes that most of the businesses on offer will “struggle to adapt to current economic and business environment”. As the industry crawls out of the credit crunch, UMB expects “higher quality” investment opportunities to appear and it’s managing its debt appropriately in case one does.
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paidContent:UK
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| Mon, Mar 09, 2009 |
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Early Cuts Help UBM Increase Revenue 10 Percent In 2008; Profits Down
Could it be that the recession hasn’t yet caught up with some B2B publishers? United Business Media (LSE: UBM) today announced improved revenue and profits for the year to 31 December 2008, a dividend 10 percent higher and “satisfactory and resilient trading” for November, December and January. That’s in stark contrast to fellow B2B publishers Centaur, which is laying off 15 percent of its staff after announcing poor H208 results, Incisive Media, which breached one if its banking covenants, or Emap Inform, which imposed a company-wide pay freeze.
UBM made revenues of £887 million, a 10.7 percent rise on 2007, and increased its 2008 dividend 10 percent to 23.8 pence per share. Operating profit fell to £107.6 million last year, down from £126.1 million in 2007. More after the jump…
Results | Webcast
—Online growth, print decline: There was good growth in UBM’s online and data service revenues, which contributed 25.4 percent of revenues, but a shrinkage in print revenue. The company’s online data-services generated 17.9 percent of 2008 profits compared to 15.2 percent in 2007. UBM says it isn’t worried about the print-mag decline and boasts that 60 percent of revenues come from events, data and online services. In 2004, 56.2 percent of UBM revenues came from print; that figure now is just 24.3 percent. The company expects that print will account for 10 percent or less of overall revenues by the end of 2009, compared to 10.3 percent in 2008
—Early cost cuts: While B2B peers and newspapers step up their redundancy programmes, UBM is beginning to see the benefits of cutting 500 staff in H208 and 1,000 since June 2007.
—PR Newswire: At least 350 people were let go at PR Newswire in the U.S. last year, due to the “consolidation of editorial bureaux.” That caused UBM to lose customers and market share, but the company says that by Q308, its market share had “stabilised”—though the division’s headline revenues still grew 9.4 percent last year.
—Events: UBM’s event bookings were up nine percent year on year and accounted for 47.3 percent of operating profits in 2008 compared to 40.3 percent in 2007. Bookings for UBM’s 2009 events, worth £120 million, are up five percent on last year.
—Outlook: It’s been restructuring for the last four years, but UB says it is still “prepared to address rapidly and effectively any deterioration in performance or market conditions”.
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paidContent:UK
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VMtv Sell-off Looks More Likely As CEO Wall Exits
The speculation has rolled on for months that Virgin Media (NSDQ: VMED) will try to sell its content-making VMtv unit, but it looks increasingly likely now that the company has confirmed VMtv’s CEO Malcolm Wall is to leave the company after three years. What’s more, Times Online - which is now getting its turn in reporting the sell-off speculation - reports UBS has been brought in to handle the sale, with a hoped-for price tag of £500 million. VMtv operates Virgin’s own channels (Trouble, Bravo, Living, Challenge and Virgin 1), Sit-Up auction channels and half of the UKTV JV with BBC Worldwide.
That kind of money would be a helpful way to alleviate VMED’s high level of debt—but UKTV has been mooted as part of a merger between Worldwide and Channel 4. And the BBC has the option of buying VMED’s stake in the JV in the event of a third party offer, so the VMtv sell-off could force BBCWW’s hand.
Online, VMtv has been closing portals tied to TV brands over the last 18 months. It shut Trouble’s UGC site Homegrown, women’s site Siren was folded into the Living.co.uk, a part of virginmedia.com’s lifestyle channel. VMtv also operates iTV and online gaming via Challenge Jackpot while Most Haunted fans enjoy ghost hunting on the show’s webcams.
Wall, who joined from United Business Media (LSE: UBM) in 2006 has also worked for ITV’s regional companies including Granada, Anglia and Southern and played a key role in developing VMED’s pay TV strategy and its VOD service. He oversaw content deals for Virgin’s VOD service including the BBC’s iPlayer: Virgin’s VOD service brought in 516 million views overall in 2008. Wall also negotiated the carriage of Sky’s channels to Virgin customers.
(Photo: by tfyn)
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paidContent:UK
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| Thu, Mar 05, 2009 |
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Early Cuts Help UBM Increase Revenue 10 Percent In 2008; Profits Down
Could it be that the recession hasn’t yet caught up with some B2B publishers? United Business Media (LSE: UBM) today announced improved revenue and profits for the year to 31 December 2008, a dividend 10 percent higher and “satisfactory and resilient trading” for November, December and January. That’s in stark contrast to fellow B2B publishers Centaur, which is laying off 15 percent of its staff after announcing poor H208 results, Incisive Media, which breached one if its banking covenants, or Emap Inform, which imposed a company-wide pay freeze.
UBM made revenues of £887 million, a 10.7 percent rise on 2007, and increased its 2008 dividend 10 percent to 23.8 pence per share. Operating profit fell to £107.6 million last year, down from £126.1 million in 2007. More after the jump…
Results | Webcast
—Online growth, print decline: There was good growth in UBM’s online and data service revenues, which contributed 25.4 percent of revenues, but a shrinkage in print revenue. The company’s online data-services generated 17.9 percent of 2008 profits compared to 15.2 percent in 2007. UBM says it isn’t worried about the print-mag decline and boasts that 60 percent of revenues come from events, data and online services. In 2004, 56.2 percent of UBM revenues came from print; that figure now is just 24.3 percent. The company expects that print will account for 10 percent or less of overall revenues by the end of 2009, compared to 10.3 percent in 2008
—Early cost cuts: While B2B peers and newspapers step up their redundancy programmes, UBM is beginning to see the benefits of cutting 500 staff in H208 and 1,000 since June 2007.
—PR Newswire: At least 350 people were let go at PR Newswire in the U.S. last year, due to the “consolidation of editorial bureaux.” That caused UBM to lose customers and market share, but the company says that by Q308, its market share had “stabilised”—though the division’s headline revenues still grew 9.4 percent last year.
—Events: UBM’s event bookings were up nine percent year on year and accounted for 47.3 percent of operating profits in 2008 compared to 40.3 percent in 2007. Bookings for UBM’s 2009 events, worth £120 million, are up five percent on last year.
—Outlook: It’s been restructuring for the last four years, but UB says it is still “prepared to address rapidly and effectively any deterioration in performance or market conditions”.
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paidContent:UK
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VMtv Sell-off Looks More Likely As CEO Wall Exits
The speculation has rolled on for months that Virgin Media (NSDQ: VMED) will try to sell its content-making VMtv unit, but it looks increasingly likely now that the company has confirmed VMtv’s CEO Malcolm Wall is to leave the company after three years. What’s more, Times Online - which is now getting its turn in reporting the sell-off speculation - reports UBS has been brought in to handle the sale, with a hoped-for price tag of £500 million. VMtv operates Virgin’s own channels (Trouble, Bravo, Living, Challenge and Virgin 1), Sit-Up auction channels and half of the UKTV JV with BBC Worldwide.
That kind of money would be a helpful way to alleviate VMED’s high level of debt—but UKTV has been mooted as part of a merger between Worldwide and Channel 4. And the BBC has the option of buying VMED’s stake in the JV in the event of a third party offer, so the VMtv sell-off could force BBCWW’s hand.
Online, VMtv has been closing portals tied to TV brands over the last 18 months. It shut Trouble’s UGC site Homegrown, women’s site Siren was folded into the Living.co.uk, a part of virginmedia.com’s lifestyle channel. VMtv also operates iTV and online gaming via Challenge Jackpot while Most Haunted fans enjoy ghost hunting on the show’s webcams.
Wall, who joined from United Business Media (LSE: UBM) in 2006 has also worked for ITV’s regional companies including Granada, Anglia and Southern and played a key role in developing VMED’s pay TV strategy and its VOD service. He oversaw content deals for Virgin’s VOD service including the BBC’s iPlayer: Virgin’s VOD service brought in 516 million views overall in 2008. Wall also negotiated the carriage of Sky’s channels to Virgin customers.
(Photo: by tfyn)
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