UBM Revenue Up Slightly in Q3
Company cautious on full-year expectations though.
UBMÂ posted marginal revenue gains through the third quarter after a slow first half to the year. The company relied on growth in its events segment, which makes up about 57 percent of its total revenue, for the improvement.
Overall, UBM saw year-over-year revenue growth of 0.6 percent to $936.5 million (Â£580.5 million), with an underlying increase of 2.3 percent. Its events segment grew 2.7 percent to $534.5 million (Â£331.3 million), while PR Newswire had a 3.4-percent gain and revenues for the company's marketing services division fell 9.7 percent as it undergoes continued restructuring.
Events performance was bolstered by large shows that performed as expected, raising underlying revenue 10.8 percent from the prior quarter and 4.3 percent from 2012. Forward bookings for major events were up 8.5 percent.
While the Q3 news was largely positive, David Levin, CEO of UBM, notes that full-year revenue could miss previous estimates. Lower biennial events revenues, slower growth in mid-sized and smaller shows and "softer market conditions" in Brazil and India are to blame.
"We now expect full year underlying revenue growth to be at or slightly below the bottom of our guidance range of 3-5 percent," he says in a statement. "Our adjusted full year operating margin [will] be at the upper end of the 22-23 percent range."
The earnings report was the first since LevinÂ announcedÂ he would be leaving the UBM by July 31, 2014. The company says it has retained an executive recruitment firm and initiated the search for his successor.