29th Apr 2014 08:05
LONDON (Alliance News) - UBM PLC Tuesday reiterated its guidance for 2014 despite seeing revenues decline in the quarter to end-March, hit by currency exchange movements, events running later than in 2013, and restructuring in its marketing services.
UBM posted revenue of GBP163.0 million in the quarter, down from GBP188.5 million in the previous year, leading to a total adjusted operating profit of GBP29.4 million, down from GBP35.4 million.
The company's Events business saw revenue decline to GBP93.3 million from GBP107.5 million, hit by the appreciation of sterling and events running later during 2014 than they had in 2013. The company said that strong growth from in the US and Emerging Markets more than offset an expected decline in the UK.
Operating margin in the Events business dropped to 26.0% from 28.0%, hit by the decline in UK revenues and higher investment.
Forward bookings in the Events business for the year are GBP136.7 million, up 22% from the previous year, UBM said.
Other marketing services revenue declined to GBP23.0 million from GBP31.8 million, hit by product rationalisation in its US technology business.
PR Newswire revenue declined to GBP46.7 million from GBP49.2 million, hit by the appreciation of sterling. On an underlying basis, revenue rose 2.6%, UBM said.
Broker Liberum reiterated its Buy rating and 840 pence price target for UBM, although it noted that the interim management statement was "likely to be seen as slightly disappointing, with the underlying revenue declining higher than what we think the market expected."
However, Liberum said that UBM's forward bookings look strong, and its underlying business model is still attractive.
Numis reiterated its Hold rating, noting that the results were below expectations, with the company's Events business weaker than it had hoped. Numis also noted the positive forward bookings and reiterated guidance. As a result, Numis has made no change to its forecasts for UBM.
Shares in UBM were trading up 3.6% at 676.28 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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