Informa (PK) (USOTC:IFPJF)
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From Jul 2019 to Jul 2024

United Business Media PLC (UBM.LN) Friday said it is on track to meet full-year forecasts as the events and publishing group posted a 7.3% rise in first-half pretax profit, but remained cautious about the outlook.

"Let's temper the optimism. It is a solid performance, but it is not boom time," Chief Executive David Levin said. "While we see evidence of improved trading conditions in many of the markets and geographies in which we operate, we remain cautious regarding the pace, depth and sustainability of the wider macro-economic recovery."

Levin said the group's strongest growth areas are the emerging markets such as China and Brazil. However, the U.K. market remains "difficult."

Earnings before interest, tax and amortization for the six months ended June 30 rose to GBP91.1 million from GBP84.9 million a year earlier. Adjusted operating profit was up 6.3% year-on-year to GBP83.2 million.

However, group revenue fell 0.2% to GBP434.3 million from GBP435 million. Targeting, distribution and monitoring revenue rose 7.4%. Data, services and online revenue rose 2.3%, while events revenue was up 1.5%. Forward bookings for exhibition stand space at the group's top 20 tradeshows running in the next 12 months are up 12% year-on-year, the company said.

Print revenue fell 13.9% and the company said it is continuing to address the impact of a shift away from print after closing four titles in the first half. "We are not calling the bottom, but we are noting that the run rate has stabilized," Levin said.

At 0719 GMT, United Business Media shares were down 19 pence, or 3.4%, at 554 pence compared to a 0.3% drop in the FTSE 250 index.

Numis Securities said the results were ahead of its forecasts and raised its target price on the stock to 600 pence from 572 pence, but added the shares have had a strong recent run.

UBM also said Friday it has acquired the Shanghai International Children-Baby-Maternity Products Expo and related businesses for up to $16.1 million.

The company added that it aims to make further acquisitions in the second half of the fiscal year. Levin said he is scanning all markets for opportunities, including customer franchises, but noted that it is unlikely the group will enter a new territory with a brand new operational segment.

The company, which publishes a range of business titles, owns news distribution service PR Newswire and runs an events and conferences business, kept its interim dividend unchanged at 6 pence.

Publishing and events groups have suffered from customers tightening budgets during the recession, as well as from weak advertising markets, but are starting to show cautious optimism about a recovery.

Anglo-Dutch publishing and events group Reed Elsevier Thursday cheered the market with better-than-expected first half results although it warned that "recovery will be gradual as conditions remain constrained in many of our markets."

Informa more than doubled first-half pretax profit Tuesday and boosted its interim dividend by 25% as it expects growth in the second half to be driven by continued improvement in its events and training division and stabilization of subscription revenue in its publishing division.

However, it did caution that recovery in the events sector is at an early stage.

-By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; tommy.stubbington@dowjones.com and Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; simon.zekaria@dowjones.com