London-headquartered United Business Media reports first-half profits down 10% from last year’s £40.4 million to £36.4m ($57.14m; €58.04). Turnover also plummeted from £490m to £412m. The primary cause of this diminished performance was the effect of the US recession on the group’s stateside PR news service and publishing division.
The result would have been far worse had it not been for a rigorous cost-containment programme and a 68.2% increase in underlying profits at UBM’s Asian and European units.
Says chief executive Lord Clive Hollick: “There has been no-let up in the difficult marketing conditions. To offset the impact of tough markets, we have taken further substantial action on costs to protect the growth of profitability.”
As to the year’s second half, the eastern hemisphere of the political peer’s crystal ball was rosy, the western volatile: “The outlook for the UK, European and Asian businesses remains encouraging. The outlook for the US business is mixed, with continuing pressure on revenues, no upturn anticipated during the rest of 2002, and further substantial cost savings being realised.”
Data sourced from: BrandRepublic (UK); additional content by WARC staff