WORLD - NASDAQ-listed US organiser Global Sources, a specialist in Asian events, is increasing its first half revenue targets despite a slow start to the year in its Q1 results.
First quarter revenue dropped to US$31.3m from $38.9m in 2012, with exhibitions revenue at $1.5m (2012: $2.2m).
“Our first quarter results reflect the soft and uncertain overseas demand for exports,” said Global Sources’ executive chairman, Merle A. Hinrich. The organiser said the recent acquisition of Shenzhen International Machinery Manufacturing Industry Exhibition and its related shows (SIMM) “will expand our portfolio of domestic trade shows in mainland China and give us a strong presence in a large and growing market sector".
The company is increasing its first half targets due to “stronger than expected revenue performance and cost savings". Revenue for the first half of 2013 ending in June is expected to be in the range of $89-91m, compared to $105.7 for the first half of 2012. Exhibitions revenue is expected to be 38 per cent, with seven per cent for print and 58 per cent for online.
Global Sources completed the acquisition of a property in Hong Kong in the first quarter of 2013, which reduced the firm's cash pile by $24.7m. This will be offset to some extent by the sale of a property in Shenzhen in the second quarter of 2013, expected to increase its cash by $16.3m.
“In the first quarter, we took action to reduce operating expenses. We intend to continue our efforts to strike the right balance between investing for the future and prudently managing costs,” said Global Sources’ CFO, Connie Lai.
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