Magazine Closures Slow at UBM Through H1
Company reports 6.3 percent bump in profit overall.
While print magazine revenue continued to slide during the first half, United Business Media trimmed its portfolio by four titles—closing significantly fewer than the 15 it killed off through the first six months of 2009. It even added one new magazine.
Apparently the cutbacks are paying off. According to the company’s most recent earnings report, the print magazine segment saw revenues decline 13.9 percent while operating profits grew 12.1 percent.
As a smaller portion of UBM’s overall revenue mix, print magazines made up only 4.4 percent of the company’s revenues through the first half, a decline of 4.2 percent compared to the same period last year. “In line with our established strategy, we continue to take advantage of opportunities for print products in fast-growing economies and sectors, while also managing our print magazine portfolio towards a smaller, more profitable and commercially sustainable set of leading titles,” CEO David Levin says in a statement announcing the financial results.
Overall, the company reported a 6.3 percent increase in adjusted operating profit, to nearly $130 million. Revenues dipped slightly (0.2 percent) to about $678 million.
UBM’s data, services and online segment saw operating profits jump 23.8 percent, including a 15.3 percent increase in online revenues, driven in part by “strong” online advertising growth. Its events business, which makes up 48.9 percent of the company’s overall revenues, reported a 7.7 percent increase in operating profit, held up in part by biennial events. Total revenues grew only 1.5 percent while revenue from attendees increased 6 percent.
Through the first half, UBM says it acquired 12 businesses for a combined total of nearly $68 million. EBITDA spiked 7.3 percent to about $142.3 million.