18th Oct 2012 07:00
18th October 2012 Positive performance - 2012 Group guidance maintained Interim Management Statement for the nine months ended 30 September 2012
Highlights
* Revenue for the nine months was up 4.0% at £734.6m (Sept 2011: £706.2m);
underlying revenue growth was 4.9%
* Adjusted operating profit was up 11.1% to £141.7m (Sept 2011: £127.5m)
* Adjusted operating profit margin rose to 19.3% (Sept 2011: 18.1%)
* Consolidated Group guidance for full year 2012, of 4-5% underlying growth
and a margin greater than 19.3%, remains unchanged
* UBM's Board of Directors has decided to recommend that UBM plc return to a
United Kingdom tax domicile, subject to shareholder approval
David Levin, Chief Executive Officer, UBM said:
"UBM remains on track to deliver the consolidated Group guidance we reiteratedat the Interim Results. Events growth continues as expected with good growth inour large Q3 events, particularly in China, and we continue to invest tostrengthen our global Events business. PR Newswire performed well, with goodgrowth and margins on track. The Data Services and Marketing Services segmentsreflects slightly softer market conditions in businesses that serve the globalsemi-conductor industry. Our guidance reflects this softness and we remainmindful of the continuing uncertainties in the macro environment. We expect tocomplete the strategic review of Data Services by the end of Q1 2013."
Unaudited results for the nine months ended 30 September 2012
Revenue 2012(1) 2011 Change Underlying Change(1) £m £m % % Events 338.9 278.5 21.7 12.7 PR Newswire 147.2 139.7 5.4 4.5 Data Services 123.7 138.3 -10.6 -2.2 Marketing Services - Online 67.1 63.5 5.7 5.3 Marketing Services - Print 57.7 86.2 -33.1 -14.5 Total Revenue 734.6 706.2 4.0 4.9 Margin Adjusted Operating Profit 2012(1) 2011 Change 2012 2011 £m £m % % % Events 105.1 85.5 22.9 31.0 30.7 PR Newswire 32.2 28.5 13.0 21.9 20.4 Data Services 15.5 18.6 -16.7 12.5 13.4 Marketing Services - Online (0.2) 0.5 nm (0.3) 0.8 Marketing Services - Print 2.9 4.7 -38.3 5.0 5.5 Corporate Operations (13.8) (10.3) nm - -
Total Adjusted Operating Profit 141.7 127.5 11.1 19.3 18.1
Adjusted operating profit is group operating profit excluding amortisation of intangible assets arising on acquisitions, exceptional items and share of taxation on profit from joint ventures and associates.
(1) Following the formation earlier this year of our UBM Technology businessunit, a number of business activities have been reallocated from the DataServices segment to Events and Marketing Services - Online. The impact of thisrealignment on revenue and EBITA for the 9 month period ended 30 September 2012is as set out in the following table:£m Data Events Marketing Services - Services Online Revenue (8.5) 5.5 3.0 EBITA (0.2) 0.0 0.2 Events
* YTD event revenues are up 21.7% to £338.9m (Sept 2011: £278.5m); underlying
growth was 12.7%.
* Of our top 20 shows which ran during the quarter Furniture China, Black Hat
USA, Concrete Brazil and Children-Baby-Maternity-Expo showed good double
digit growth while growth at the September Hong Kong Jewellery Show was, as
expected, more moderate given venue space constraints, which will continue
into 2013.
* It should be noted that a number of shows ran in H1 in 2012 rather than Q3
as in 2011. * YTD adjusted operating margin of 31.0% (Sept 2011: 30.7%).
* As at 30 September 2012, forward bookings for our 2011 Top 20 annual events
are up 14.7% compared to last year.
* We continue to build our physical presence across target Emerging Markets
and today announce the acquisition of the EFEM events in Turkey - see separate press release. * Events guidance: we continue to expect full year underlying growth of 12-14% with a full year margin of 31-32% reflecting the lower even year biennial impact and higher investment in Q4.
PR Newswire
* YTD PR Newswire's revenues rose 5.4% to £147.2m (Sept 2011: £139.7m); underlying growth was 4.5%. * Our US Distribution business had a strong Q3 as the initiative to sell
higher engagement offerings to our existing client base more than offset
declines in traditional release volumes. The other areas of PR Newswire have broadly continued the trends seen in the first half of the year. * YTD adjusted operating margin was 21.9% (Sept 2011: 20.4%) reflecting
growth in US Distribution and international business as well as the benefit
of investment and sales force development. This was partially offset by
dilution from Vintage and the launch of the Agility product.
* PR Newswire guidance: we continue to expect full year underlying growth of
3-5% with full year margin in line with the FY 2011 margin of 21.8%.
Data Services
* YTD Data Services revenues fell 10.6% to £123.7m (Sept 2011: £138.3m), with
underlying revenues down 2.2%.
* Our businesses in healthcare, trade and transport, built environment and
paper performed in line with our expectations. However, UBMTechInsights
revenues continue to reflect delays in expected orders given softer market
conditions in the global semi-conductor industry. * YTD adjusted operating margin was 12.5% (Sept 2011: 13.4%). * Data Services guidance: with continued weakness in the semi-conductor
industry, Data Services revenue and margin may both be approximately 100bps
lower than the previous segmental guidance (revenues flat and margins of
17%).
Marketing Services - Online & Print
* Combined reported revenues fell 16.6% to £124.8m (Sept 2011: £149.7m), with
underlying revenue down 4.7%. * The combined YTD adjusted operating margin was 2.2% (Sept 2011: 3.5%).
* Weakness has been most pronounced in both our electronics portfolio (print
and online) and in the built environment, where we have seen revenue declines of 11% and 12% respectively. * Overall YTD Online revenues rose 5.7% to £67.1m (Sept 2011: £63.5m). Underlying revenues were up 5.3% with growth in webcasting and custom engagement products partially offset by declines in other online advertising revenues.
* YTD print revenues fell by 33.1% to £57.7m (Sept 2011: £86.2m) largely
reflecting disposals of print titles. Underlying revenues were down 14.5%
as a result of continued declines in advertising and general marketing spend, notably in the technology, pharmaceutical and construction industries.
* UBM's print magazine portfolio comprised 84 titles at 30 September 2012 (30
Sept 2011: 103).
* Marketing Services - Online & Print guidance: as a result of weakness in
more traditional online advertising, particularly for the electronics
market, and accelerating declines in print advertising, we anticipate
combined underlying revenues will be flat for the full year with a combined
margin of 2-3%. Portfolio changes
* There were no acquisitions or disposals completed during Q3 2012.
Debt
* UBM's consolidated net debt stood at £518.9m as at 30 September 2012 down
from £536.8m at 30 June 2012.
* 2.1x LTM EBITDA (pro forma for acquisitions).
Tax domicile
* The Board has resolved to recommend to return UBM plc's tax domicile to the
UK before year end, subject to shareholder approval.
* A shareholder Circular will be issued to shareholders on 1st November 2012
and a general shareholder meeting held thereafter.
* We anticipate no change in reported tax rates or taxation paid as a result
of this change in domicile.
Foreign exchange rates
* Note that all constant currency or underlying calculations are based on
average FX rates for the nine months year to date.
Average rate for period YTD 2012 YTD 2011 Change
£/$ 1.58 1.62 -2.5% £/€ 1.23 1.15 +7.0%
* It should be noted that Q4 2011 average £/$ rate was 1.57 versus the
current spot price of 1.61.
Notice: Investor Day - 30th October
UBM will be hosting an investor day at 3pm on Tuesday 30th October withpresentations on our Global Events Momentum initiative and on UBM Technology,our division serving the Technology community. The presentations will be hostedat the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. The eventis expected to last approximately 2 hours. As required by the stock exchangesecurity, all attendees must be registered in advance. We would therefore begrateful if you could confirm whether you, or a colleague, will be able to joinus by return email to: [email protected] live webcast of the presentations will be made available from UBM's website.To access the webcast please go to www.ubm.com. An on-demand recording of thewebcast will also be accessible from UBM's website later in the evening. - Ends - ContactsMedia Investors
Peter Bancroft Director of Communications Kate Postans Head of Investor Relations
E-mail [email protected] E-mail [email protected] Direct telephone +44 20 7921 5961 Direct telephone +44 20 7921 5023 telephone telephone Chris Barrie Citigate Dewe Rogerson E-mail [email protected]
Direct telephone +44 20 7282 2943
Notes to EditorsAbout UBM plcUBM plc is a leading global business media company. We inform markets and bringthe world's buyers and sellers together at events, online, in print and providethem with the information they need to do business successfully. Our 6,500staff in more than 30 countries are organised into specialist teams which servecommercial and professional communities, helping them to do business and theirmarkets to work effectively and efficiently.
For more information, go to www.ubm.com; follow us on Twitter at @UBM_plc to get the latest UBM news.
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