United Business Media saw its share price slump 4% to £5.65 on Friday morning after posting first-half profits down by nearly half from £137.8 million to £71.1m.
According to chief executive Lord Clive Hollick, advertising page volumes were down by 26.1%. The chill was most keenly felt in the US where the advertising downturn sliced profits at CMP – publisher of Information Week, Internet Week and Network Computing – from £70.7m in the same period last year to £35.4m.
In partial compensation, the acquisition of US market research specialist Roper Starch International for $88m (£61.5m) helped boost UBM’s market research revenues to £200m annually.
In an effort to halt the profits slide, United has cut online investment by £71m to £20m in the current financial year and culled 700 jobs in a bid to hit its cost-saving target of £60m.
News source: CampaignLive (UK)