1 / 28

2001 INTERIM RESULTS

2001 INTERIM RESULTS. Professional Media. Market Research. News Distribution. ANALYST PRESENTATION. Very tough trading conditions High tech ad decline / US economic slowdown Revenue down 4% Operating profit & EPS down 38% £60m savings secured for 2001: £15m impact in H1

Download Presentation

2001 INTERIM RESULTS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. 2001 INTERIM RESULTS Professional Media Market Research News Distribution ANALYST PRESENTATION

  2. Very tough trading conditions High tech ad decline / US economic slowdown Revenue down 4% Operating profit & EPS down 38% £60m savings secured for 2001: £15m impact in H1 Market share gains in all core businesses Financial & Operational Summary

  3. £250m cash balance after £1.25bn share buy back Building market leading positions Revenue and cost synergies from group operations Acquisitions: total $150m PRN: Cyperus ANP NOP: Allison Fisher Roper Starch Development Summary

  4. Acquisition of Roper Starch • $88m : 1.3 times 2000 revenue of $69m • Leading consumer trends consultancy • Consumer, healthcare, automotive, IT, financial • 50/50 syndicated Vs custom • Significant costs & revenue synergies • New growth opportunities • Roper products to new geographies and markets • NOP World products to Roper client base • Earnings accretive in first full year

  5. United’s Strategy • UBM aims to become a key provider of market information to high growth sectors including • Information Technology • Healthcare • Media

  6. United Presence IT Health Media   Editorial & Advertising   Events & Conferences   Syndicated Research    Customised Research   Consultancy Services    Educational & Training    News Distribution & Monitoring

  7. Current Trading & Outlook • CMP June in line with expectations • Not planning on recovery in US in 2001 • Quality of CMP titles maintains yield and boosts market share • Market research good progress • Healthcare and syndicated buoyant • News distribution revenues ahead • profits checked by higher investment • 2001 savings of £60m weighted to H2 • Continued investment in new products

  8. 2001 INTERIM RESULTS Professional Media Market Research News Distribution FINANCIAL REVIEW

  9. Financial Results Six months to 30 June Change % 2001 2000 489.4 31.3 90.8 (19.1) 71.7 11.0 511.6 95.6 (39.8) 55.8 82.0 137.8 18.8 11.0 (4.3) (37.8) - 62.7 - (48.0) (37.2) - Continuing turnover (£m) Continuing operating profit (£m) Interest (£m) Post Interest Cont’ op’ profit (£m) Discontinued operating profit (£m) PBT * (£m) EPS * (p) Dividend per share (p) 59.5 11.8 *before exceptionals and amortisation of intangibles

  10. Profit & LossSix months to 30 June Operating Profit Group Turnover 2001 £m Change % 2001 £m Change % Underlying % Underlying % (12.3) 1.9 7.9 (7.4) (7.9) (29.9) (8.3) - 302.3 66.9 76.1 29.2 14.9 1.3 (49.9) 1.0 7.1 (33.9) (16.7) (3.8) (37.8) - Professional Media News Distribution Market Research Business Services Consumer Media Online Total Continuing Discontinued (9.2) 11.1 13.9 (3.2) (7.9) (25.9) (4.3) - 35.4 21.2 10.6 6.0 (13.7) (19.1) (51.4) (3.9) 5.4 (36.1) (16.7) (2.8) (39.4) - 67.2 445.3 489.4 59.5 •Offline Margin 15.4% (22.1%) •

  11. Professional MediaSix months to 30 June 2001 £m 2000 £m Change % Underlying % Turnover CMP Media CMP Asia CMP Information Total 210.4 24.1 67.8 25.9 9.1 0.4 11.7 239.7 23.7 69.4 332.8 58.6 7.8 4.3 70.7 21.2 (17.9) 1.1 5.0 (12.3) (57.0) (4.3) (86.7) (51.4) (12.2) 1.7 (2.3) (9.2) (55.8) 16.7 (90.7) (49.9) 302.3 Operating Profit CMP Media CMP Asia CMP Information Total Margins % 35.4

  12. News DistributionSix months to 30 June 2001 £m 2000 £m Change % Underlying % Turnover US RoW 31.7 56.4 10.5 20.4 0.8 52.5 7.7 60.2 18.8 2.2 21.0 34.9 11.1 1.0 1.9 (3.9) 66.9 Operating profit US RoW 21.2 Margins %

  13. Market ResearchSix months to 30 June 2001 £m 2000 £m Change % Underlying % Turnover US RoW 44.4 31.7 7.6 3.0 13.9 40.6 26.2 66.8 7.3 2.6 9.9 14.8 13.9 7.1 7.9 5.4 76.1 Operating profit US RoW 10.6 Margins

  14. 59 Other Ad’ 15 Non Advertising High Tech Ad’ 26 United TodaySix months to 30 June 2001Continuing offline turnover By Ad % / Non-Ad % High Tech Advertising = 17% profits

  15. CashflowSix months to 30 June 2001 £m’s 1,553.0 (1,250.5) 61.7 (53.0) 36.1 28.0 (20.1) (56.8) (18.5) (29.2) 250.7 Opening cash Less return of capital B shares outstanding Investments Interest received Profit less net working capital Capex Dividend paid Tax paid Other Closing cash

  16. 2001 INTERIM RESULTS Professional Media Market Research News Distribution Operating Review

  17. Action on Costs Group Wide • Saved £15m in H1 • Secured £60m in 2001 • 700 staff, or 9% headcount reduction • A third of savings relate to staff • Reductions also include • Marketing, CMPnet structure • Office consolidation, administration, systems • Substantial group initiatives in hand for 2002/03

  18. Synergies From Group Operations • REVENUE • Share client database for cross promotion and selling • NOP uses database to create panels • Best practice • PRN sales training to NOP • PRN news distribution & webcasting for all tradeshows • COSTS • Central review: economies of scale and remove duplication • Single networks and common webhosting • Standard group applications, shared IT services

  19. Professional MediaSix months to 30 June Publications % Events % Turnover CMP Media CMP Asia CMPi Total 79 14 70 72 71 14 47 56 21 86 30 28 29 86 53 44 Operating Profit CMP Media CMP Asia CMPi Total

  20. CMP – High Tech Monthly Market Share Analysis By Ad Page Volumes 2001 January - December 2000 (Based on Ad Pages) 29.5% CMP 10.5% Cahners 10.4% IDG 8.9% Ziff 5.5% Penton Ad Page Volumes in June CMP Down 24% Ziff Davis Down 39% IDG Down 52% Source: IMS/Auditor

  21. Professional Media • CMP Media Yield maintained • Quality of Brands Reinforced • Launch programme: up to $10m • Launch 2 new publications in autumn • Extend proven brands to new markets • Digital database • Launch platform for new products • Inside Magazine • M Business on target

  22. Professional Media • No change in number of advertisers • Cut backs in level of advertising • Revenue from top 25 broadly as in 2000 • Medium & smaller companies reduced • Resilience of core client business • Demonstrates quality of CMP brands

  23. News Distribution • Market share: net gain of 70 listed companies • Underlying revenue ahead • US revenue per message up 12% • Reg FD driving message length, secured price increase • US message volume down 12% • Earnings releases up 9% / Reg FD helps trading updates up over 50% • M&A, IPO’s and New products all down approx 40% • Downturn in discretionary masking significant underlying growth in non-discretionary business • Measuring & monitoring now 13% (11%) of revenue

  24. Market Research • Increasing market share • NOP UK revenue growth firmly ahead of UK market • MRI performing strongly, increased client base • Healthcare buoyant, new products • E-market for pharmaceuticals • Sales Force Assessor • MMI & ePocrates strategic alliance • DTC e-monitor

  25. Operating Summary • Costs cut • Short term mitigation • Drive synergies • Shared infrastructure • New revenue streams & new products • Integration of acquisitions • Continuing to invest to drive market share

  26. Tough market • Firm action on costs • Market share gains in all businesses • Investing to drive future revenue growth and take further market share

  27. 2001 INTERIM RESULTS Professional Media Market Research News Distribution

  28. United TodaySix months to 30 JuneContinuing offline by % 2001 64 29 14 48 16 14 Turnover Operating Profit

More Related