Trade show organiser UBM announced it remains confident in its 2015 outlook, despite reporting the cancellation of 37 events and a first-half pre-tax profit fall of 37.2 per cent.
The UK-based company has posted a pre-tax profit of £47.6m (US$74.1m), down from £75.8m in 2014, for the six months to 30 June 2015.
UBM reported its first-half revenue increased 26.3 per cent to £456m, up from £214.2m year-on-year, boosted by the acquisition of US-based event and marketing service Advanstar and favourable exchange rates.
On an underlying basis, adjusted for rationalisation and phasing, overall revenue grew 0.6 per cent, while events revenue was up 3.3 per cent.
Chief executive Tim Cobbold told investors he was pleased with the company’s first-half performance.
"Forward indicators for the second half events, including MAGIC, those in China and our large biennials, are good,” Cobbold said. “The board is confident in the outlook for the year."
Cobbold said UBM had made good progress rationalising its event portfolio and making targeted acquisitions as part of its Events First strategy.
The company revealed it had discontinued 37 events, which generated first half revenue of £11.6m in 2014. It also sold two events that earned £6.2m during the same period.
Investors could expect more closures over the next two years as UBM continued to review its events portfolio against a standard set of performance criteria, Cobbold said.
As previously reported in EW, the organiser cancelled its May Design Series trade fair in London, US-based wireless technology show 4G World as well as medical device exhibitions and conferences Medtec in the UK, France and Italy.
In the UK, the business reported a significant decline in its interiors portfolio, which contributed to a 12.1 per cent fall in underlying growth for events in the country.
Within the events portfolio, emerging markets delivered the strongest underlying growth, despite slipping 1.6 per cent to 10.3 per cent. The drop was attributed to phasing and rationalisation, which included the shift of Sign China to the second half of 2015.
Emerging markets accounted for 32 per cent of events revenue, generating £87.2m (2014: £83.6m), with China contributing 70 per cent.
Meanwhile, it was announced Richard Kerr has been appointed acting chief executive of UBM EMEA, to replace Simon Foster who assumes the role of UBM Americas chief executive.
Cobbold was upbeat about three first-half acquisitions for consideration of £39.9m: Hospitalar in Brazil; eMedia Asia, which owns a majority stake in China’s China International Optoelectronic Expo; and textile printing show CSTPF China.
The company reported its higher than expected effective tax rate of 12.7 per cent was caused by UK Budget changes which disallowed the offset of historic or current year operating losses against control foreign companies’ income.
UBM’s interim dividend remains unchanged at £0.053 per share.
