BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific Arabic Spanish Russian Chinese Welsh
BBCi CATEGORIES   TV   RADIO   COMMUNICATE   WHERE I LIVE   INDEX    SEARCH 

BBC NEWS
 You are in:  Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 


Commonwealth Games 2002

BBC Sport

BBC Weather

SERVICES 
Tuesday, 5 March, 2002, 15:22 GMT
UBM hit by advertising downfall
CMP's website
UBM is concentrating on the business-to-business market
Britain's United Business Media (UBM) became yet another victim of the falling advertising market.

The media company, which operates in the US, Europe, Latin America and Asia, reported its profits were slashed by a half in 2001 to 96.8m ($137.7m).

The UBM chief executive Clive Hollick named the past year "one of the toughest trading periods we have experienced as the slump in technology advertising halved group profits".

The situation in the company's core business, the CMP Media, which is a part of UMB's professional media division and whose stable of technology publications includes the 440,000-circulation trade bible Information Week, was even worse.

CMP saw profits fall by 89% to 10.8m on turnover down 29%.

No rosy future

The parent company does not see any improvement in the near future.

"There is lots of talk about a recovery but we do not see any tangible signs. But there are no further signs of downturn," Mr Hollick said.

Most media companies have seen a slump in advertising, and therefore profits.

Britain's Pearson group, the owner of the Financial Times, posted a 12% pre-tax profits loss for 2001 on Monday.

Reshuffling business

The companies are trying to boost profits by launching cost-cutting programmes and slashing free services.

UBM has sold off a series of operations, including Express Newspaper, to focus largely on the business-to-business market.

The chief executive said he was prepared to spend $400m on acquisitions "based on our current level of profitability".

No terms or targets were given.

UBM reported that although CMP Media is far from recovery other group's businesses were doing relatively well.

Shares in UBM, which soared 30% over the past four weeks to a seven-month high of 600p, were trading 2.3% lower in early trade on Tuesday.

See also:

04 Mar 02 | Business
FT.com to start charging users
04 Mar 02 | Business
RTL's profits fall 35%
14 Dec 01 | Business
Channel 5 feels advertising chill
24 Feb 02 | Business
Leo Kirch: 'Murdoch is a shark'
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories