UBM 2011 results

February 28, 2012 — Fusion DigiNet

UBM plc has reported 2011 results.

Highlights

  • Revenues up 9.3% to £972.3m – underlying revenue(a) growth of 7.9%
  • Adjusted operating profit up 17.5% at £201.9m
  • Margin up to 20.8% from 19.3%
  • Fully diluted adjusted EPS up to a record of 56.8p, 6.6p (13.1%) up on 2010
  • Full year dividend up to a record of 26.3p, (2010: 25.0p)
  • Cash generation from operating activities up 31.7% to £203.7m (100.7% cash conversion)
  • Events profits up 44.6% to £135.2m, 62.5% of total excluding corporate costs
  • Emerging Markets revenues up 24.4% to £207.1m
  • Emerging Markets operating profit up 33.4% to £65.6m representing 30.4% of total
  • £71.2m invested in eight acquisitions
  • Debt profile improved with maturities extended, net debt of 2.4x EBITDA

David Levin, UBM’s Chief Executive Officer, commented:  “2011 has been a strong year for UBM, with EPS up over 13% to a record 56.8p.  An outstanding performance from our Q4 biennial events capped off a year of consistent delivery in which all our businesses met or exceeded their targets for the year. On the back of these results, the Board has declared a final dividend of 20p, up 1p over 2010, resulting in a record dividend for the year.”

“These results are the fruit of our consistent strategy to focus on providing marketing, communications and data services, in winning formats, to thriving business communities.  Our Emerging Markets revenues grew by more than 24% during 2011 and contributed just under a third of our overall profits: in 2011 we generated more revenue in China than in Europe for the first time. Our Events business performed particularly well and 1.7 million people attended UBM events in 2011, up from 1.3 million in 2010 with profits growing by 45%. The solid performance of Data Services and PR Newswire in 2011 reflects the initial benefits of our continuing investment in these businesses. Our Marketing Services businesses also continue to develop well, with the combined effects of continuing strong digital growth and print disposals likely to result in online revenues outstripping print revenues in 2012.”

“2012 trading has started well. We anticipate continued underlying growth and a positive performance across the business whilst recognising the continuing uncertainties of the global economy.”

Business performance

Full Year 2011

Full Year 2010

Change %

Change at CC

%

Underlying Change %
Revenue

£972.3m

£889.2m

9.3

11.3

7.9
Adjusted operating profit

£201.9m

£171.8m

17.5

19.8

2.3
Adjusted operating profit margin

20.8%

19.3%

1.5%pts

 

 
EBITDA

£218.7m

£188.2m

16.2

 

Adjusted PBT

£177.4m

£156.4m

13.4

 

 
Adjusted EPS

Fully diluted adjusted EPS

57.8p

56.8p

51.0p

50.2p

13.3

13.1

 

 
Dividend per share

26.3p

25.0p

5.2

 

 
Cash generated from Operations

£203.7m

£154.7m

31.7

 

 

 

 
IFRS Statutory results (£m)

Full Year
2011

Full Year
2010

Change
%
Revenue

972.3

889.2

9.3
Operating profit

155.4

132.3

17.5
Profit after tax

86.1

99.4

(13.4)
EPS (p)

31.1

37.3

(16.6)
Net Debt

526.4

484.6

 

 

 

  

Operational Highlights

Segmental results

 

Full Year

Full Year

Change

Change at CC

Underlying Change
£m

2011

2010

%

%

%
Revenue

Events

396.9

310.0

28.0

30.8

14.6
PR Newswire

187.8

181.2

3.6

6.6

4.2
Data Services

187.0

184.7

1.2

2.3

3.0
Marketing Services – Online

88.5

69.2

27.9

31.7

16.4
Marketing Services – Print

112.1

144.1

(22.2)

(22.0)

(4.6)
Total Revenue

972.3

889.2

9.3

11.3

7.9
 

 

 

 
Adjusted Operating Profit

 

 

 
Events

135.2

93.5

44.6

47.9

 
PR Newswire

41.0

42.1

(2.6)

0.2

 
Data Services

30.3

34.1

(11.1)

(11.1)

 
Marketing Services – Online

3.6

1.3

176.9

200.0

 
Marketing Services – Print

6.1

10.0

(39.0)

(40.2)

 
Net corporate costs

(14.3)

(9.2)

(55.4)

(55.4)

 
Total Adjusted Operating Profit

201.9

171.8

17.5

19.8

 
 

 

 

 

 

 
Adjusted Operating Profit Margin          
Events

34.1%

30.2%

3.9%pts

  
PR Newswire

21.8%

23.2%

(1.4)%pts

  
Data Services

16.2%

18.5%

(2.3)%pts

  
Marketing Services – Online

4.1%

1.9%

2.2%pts

  
Marketing Services – Print

5.4%

6.9%

(1.5)%pts

  
Total Adjusted Operating Profit Margin      

20.8%

19.3%

1.5%pts

 

 

Read the full announcement

UK, London

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UBM acquires four tradeshows

February 28, 2012 — Fusion DigiNet

 

 

UBM plc has acquired outright, or majority equity stakes in, the following four tradeshows for a total cash consideration of £19.4m and deferred consideration of up to £4.4m. In 2011 these tradeshows generated aggregate revenues of approximately £8.5m:

  • Malaysian International Furniture Fair (MIFF)
  • China International Exhibition & Symposium on Dental Equipment, Technology & Products (DenTech China)
  • Renewable Energy India Expo
  • Airport Cities Exhibition & Conference (ACE)

Malaysian International Furniture Fair – UBM plc has acquired outright the MIFF exhibition on behalf of UBM Asia from its private owners. Founded in 1995, MIFF is an export-oriented furniture tradeshow which is held annually in Kuala Lumpur. The exhibition focuses on office furniture, home furniture and wood furniture, alongside fittings to furnishing materials. The acquisition of MIFF enhances UBM’s strong position in the furniture exhibition market, complementing Furniture China in Shanghai, the Index fairs in India and Interiors in the UK. Over 400 exhibitors attended the 2011 MIFF event, occupying over 30,000 net square metres and attracting over 20,000 visitors, more than 40% of whom were from overseas. MIFF’s founder will remain with the business following its acquisition, together with a further 16 employees. In 2011 the event generated revenues of approximately RM 20m (£4.1m). The business’s gross assets as at 30 November 2011 were £5.4m.

DenTech China – UBM plc has signed an agreement to acquire a 70% equity stake in Shanghai UBM ShowStar Exhibition Co. Ltd., a newly formed joint venture which owns DenTech China, China’s leading dental industry exhibition, from its private owners. The fifteenth edition of Dentech was held in October 2011 in Shanghai. The event attracted over 500 exhibitors, who occupied approximately 12,000 net square metres. The event drew 65,000 visitors, primarily dental professionals, approximately 10% of whom came from overseas. A symposium was held alongside the exhibition, attracting over 2,600 delegates. Based in Shanghai, the business employs five staff. In 2011 the business generated revenues of approximately £2.3m. The business’s gross assets as at 31 August 2011 were £2.3m. The transaction is subject to regulatory approval and is expected to close within the next month.

Renewable Energy India – UBM plc has signed an agreement to acquire the Renewable Energy India exhibition – India’s leading event in this sector – from the Exhibitions India Group on behalf of UBM Asia. Launched in 2006, Renewable Energy India is an annual exhibition which focuses on non-depleting and environmentally-friendly renewable energy sources such as solar (65% of exhibitors), wind (30% of exhibitors), biomass, hydro, co-generation and geothermal. The 2011 show was held in August in New Delhi, attracting 527 exhibitors from 33 countries and occupying over 10,000 net square metres, with over 14,000 trade visitors and conference delegates. UBM stages similar events in Bangkok and

Kuala Lumpur: Renewable Energy Asia is held in co-operation with the Ministry of Energy of Thailand, attracting visitors from across the ASEAN region; the Green Energy exhibition in Kuala Lumpur is hosted by Tenaga Nasional, the largest power company in South East Asia. Renewable Energy India’s founder will remain with the business as a consultant for a period of three years, together with four employees based in New Delhi. In 2011 Renewable Energy India generated revenues of approximately £1.4m. As at 12 December 2011 the business’s gross assets of the acquired business were £0.1m. (See also separate DigiNet article on this acquisition here).

Airport Cities Expo – UBM plc has acquired Insight Media Limited, which owns the Airport Cities World Exhibition & Conference, from its private owners on behalf of UBM Aviation. UBM acquired 25% of Insight Media Limited in August 2010 as part of its acquisition of the Route Development Group. This transaction brings the remaining 75% of the company’s equity into UBM ownership. ACE is a peripatetic annual event which focuses on airport commercial activities and land use, the development of Airport Cities and the associated urban planning issues. The 2011 event was held in Memphis, TN and attracted over 600 delegates, 50 exhibitors and 32 sponsors. The 2012 event will take place in Denver on 25-27 April. The event’s Managing Director and team of four staff will join UBM Aviation as employees. In 2011 the event generated revenues of approximately £0.7m. As at 31 August 2011 the gross assets of the acquired business were £0.1m.

These acquisitions are expected to exceed UBM’s cost of capital criterion in the first full year of ownership.

David Levin, Chief Executive Officer of UBM plc said: “These acquisitions build on our well-established strategy of acquiring strong events that serve structurally growing markets and communities, and particularly events which operate in growth economies. We see attractive growth prospects for each of these events and look forward to those prospects being enhanced as they join the UBM family of events.”

UK, London & Malaysia, Kuala Lumpur & China, Shanghai & India, New Delhi & USA, Denver, CO

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A Fusion Deal: Fertilizer market information and analysis business Fertecon sold to Informa Group

February 28, 2012 — Fusion DigiNet

Fusion Corporate Partners are pleased to announce our second deal of 2012. The sale of fertilizer market information and analysis business Fertecon Limited to Informa Group.

FERTECON, founded in 1978, provides on subscription only,  price discovery, current information and analysis services to the global fertilizer industry.  Its data and forecasts are used by virtually all the leading fertilizer companies in the world as well as by many financial institutions.

Barrie Bain, Chairman and one of the founders of FERTECON Limited said, “This is an exciting development. FERTECON is an excellent fit with Informa’s Agra group. Agricultural developments drive the fertilizer market and the combination of FERTECON fertilizer industry knowledge with Agra’s insight into the agrifoodsector will create a unique resource of information and analysis. Informa’s knowledge of the food, freight, and energy sectors will significantly enhance FERTECON’s services to the fertilizer industry. FERTECON has a great team of market analysts and now they will have access to the resources of the Informa Group. ”

Barrie Bain and Vivien Bright, two of the former shareholders and directors of FERTECON Limited, will join Informa to help build FERTECON within the Group. Terry Phillips, the third shareholder and director, will work on a consultancy basis for the FERTECON business.

Paul Slight, Director at Fusion, said, “It was a pleasure to work with Barrie, Vivien and Terry. They have built a great business over the last 30 years and it will be an excellent fit with Informa’s Agra group.”

Fusion acted exclusively for the shareholders of Fertecon Limited. The team responsible for this transaction were Paul Slight (pslight@fusioncorp.co.uk) and Paul Kelly (pkelly@fusioncorp.co.uk). Waterfront Solicitors, headed by Matthew Cunningham, provided legal advice to the vendors.

UK, London and Tunbridge Wells, Kent

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UBM acquires Renewable Energy India

February 28, 2012 — Fusion DigiNet
UBM plc has acquired Renewable Energy India exhibition on behalf of UBM Asia from the Exhibitions India Pvt Ltd.

Renewable Energy India is an annual exhibition held in New Delhi to serve the Indian renewable energy market. It focuses on non-depleting and environmentally-friendly renewable energy sources such as solar, wind, biomass, hydro, cogeneration and geothermal. Launched in 2007, the 2011 event held from August 10 -12 spanned over 10,000 square metres of net exhibition space, attracting 527 exhibitors from 33 countries and over 16,000 trade visitors and conference delegates. In 2011 it generated revenues of approximately US$2.3m.

The demand for electricity in India is estimated to grow at an annual rate of 8%, driving heavy investment on developing renewable energy. Riding on these robust potentials, UBM’s experience in staging similar events in Asia will help to grow Renewable Energy India further. Renewable Energy Asia in Bangkok is held in co-operation with the Ministry of Energy ofThailand and attracts visitors from across the ASEAN region. The Green Energy exhibition in Kuala Lumpur is hosted by Tenaga Nasional, the largest power company in South-East Asia.

The event’s founder, Prem Behl, will remain with the business as a consultant. Mr Rajneesh Khattar, President – Renewable Energy India and the Renewable Energy team of four staff will be incorporated into UBM India New Delhi office, reporting toSanjeev Khaira, Managing Director of UBM India.

Jime Essink, President and Chief Executive Officer of UBM Asia said: “This acquisition proves again the commitment of UBM to further strengthen our leading position in India and we welcome Rajneesh and the Renewable Energy India team to the big UBM family.”

Renewable Energy India 2012 is scheduled to be held from 7 – 9 November 2012 at the India Expo Centre & Mart, Greater Noida (National Capital Region).

Hong Kong & India, New Delhi

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Main Street Media acquires Blue Hill

February 28, 2012 — Fusion DigiNet
Main Street Media (MSM) has added the Blue Hill (Neb.) Leader to its stable of community newspapers, all of which are located in a three-state area consisting of Nebraska, Missouri and Kansas. The Ivy’s will continue to publish their other nearby properties including the Doniphan (NE) Herald.

Blue Hills is the fourth Nebraska newspaper to become a member of the MSM group. The others are located in Red Cloud, Franklin and Alma.

Jack Krier, president of MSM, in announcing the purchase of the Leader stated: We are very pleased to add the Leader to our list of publications, and are very confident it will continue to be a leading source of information for Blue Hill and the surrounding community.

The acquisition brings to 26 the number of community newspapers owned by MSM. In addition to the newspapers, the firm also owns six shoppers.

Kansas newspapers owned by MSM are located in: Phillipsburg, Smith Center, Lebanon, Downs, Cawker City, Osborne, Plainville, Ellis and Russell.

Missouri newspapers owned by MSM are located in: Carrollton, Lexington, Higginsville, Norborne, Alma, Glasgow, Windsor, Cone, Alma, Glasgow, Windsor, Cole Camp, Lincoln, Osceola, Rich Hill, Appleton City and Humansville.

USA, Nebraska

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Scripps reports fourth-quarter results

February 28, 2012 — Fusion DigiNet

The E. W. Scripps Company reported operating results for the fourth quarter of 2011 that reflect a double-digit year-over-year increase in non-political television revenues, a moderation in the rate of decline in newspaper revenues, and lower operating expenses, excluding acquisition and restructuring costs.

Consolidated revenues were $197 million, a decrease of 10.4 percent from $220 million in the fourth quarter of 2010, which benefited from record political advertising in the television division. Excluding political advertising from both periods, consolidated revenues increased 1 percent year over year.

Operating expenses in the fourth quarter included $2.8 million of investment banking, legal and other fees associated with our acquisition of nine television stations from McGraw-Hill Broadcasting, and restructuring costs of $3.4 million. Restructuring costs primarily include costs associated with a reduction-in-force at Scripps newspapers in December, and continuing efforts to simplify and standardize advertising and circulation systems and processes in the newspaper division. The company began implementing the advertising and circulation systems in the first quarter of 2012. Total operating expenses were $180 million, unchanged from the prior year.

Income from continuing operations, net of tax, was $6.1 million, or 11 cents per share in the 2011 quarter, compared with income from continuing operations, net of tax, of $23.7 million, or 37 cents per share, in the year-ago quarter.

“We substantially repositioned Scripps in 2011, clearing the way for improved performance in 2012, enlarging our television footprint, and enabling an aggressive rollout of new digital products and services,” said Rich Boehne, Scripps president and CEO. “Late in the year, targeting holiday shoppers with new smartphones and tablets, we launched a series of paid news and weather apps that represent the next generation of market-defining digital products that we’re developing. We intend to continue the evolution of these products, building out what we believe will be a valuable digital marketplace for services built upon high-quality local news content.

“Behind all the noise in our fourth-quarter results were businesses that ended the year on a high note. Television revenues grew at a double-digit clip, the result of both solid recovery in key TV advertising categories and strong performance in our most valuable time slots – those programmed with high-quality local news. At the same time, we completed the opportunistic acquisition of nine additional TV stations concentrated in three of America’s best media markets – Indianapolis, Denver and San Diego. Together, they offer the prospect of a strong return on investment for our shareholders.

“Newspaper advertising declines continue to narrow and our operating model continues to focus on audiences and revenue categories that offer the best long-term opportunity for sustainable profits,” said Boehne.

“Despite this restaging of the company in 2011, we finished the year with a strong balance sheet and good financial flexibility.”

Fourth-quarter results by segment are as follows:

Television

Total revenue from the company’s television stations in the fourth quarter was $84.7 million – a 16 percent decrease compared with $101 million in the year-ago period, and an 11.4 percent increase when political advertising is excluded from the 2011 and 2010 totals.

The total revenue performance was a 15 percent increase from the same period in 2009, the previous fourth quarter in a non-election year.

Advertising revenue broken down by category was:

  • Local, up 14 percent to $49.4 million
  • National, flat at $23.2 million
  • Political was $3.5 million, compared with $28.1 million in the 2010 quarter

Revenue from retransmission consent agreements increased 30 percent year over year to $3.9 million.

Digital revenue rose 21 percent year over year to $2.7 million in the fourth quarter.

Expenses for the TV station group declined 2.1 percent in the fourth quarter to $62.3 million. The discontinuation of Oprah on four of the company’s stations fueled a 23 percent reduction in programming costs. The programming savings were partially offset by annual incentive awards and the decision earlier this year to restore certain retirement plan benefits.

The television division’s segment profit in the fourth quarter was $22.3 million, compared with $7.5 million in the third quarter of 2011 and $37.3 million in the year-ago quarter. (See Note 1 in the attached financial information for a definition of segment profit.)

On December 30, 2011, Scripps completed the acquisition of McGraw-Hill Broadcasting, which included nine television stations. Operating results for those stations – which include four ABC affiliates and five affiliates of the Azteca America network – did not materially affect the reported financial performance. 

Newspapers

Total revenue from Scripps newspapers fell 3.3 percent year over year to $110 million in the fourth quarter of 2011. It was the third consecutive quarter that the year-over-year decline moderated compared with the previous quarter. Revenue in the third quarter of 2011 was down 4.4 percent from the year-ago quarter.

Circulation revenue in the fourth quarter was flat at $30.7 million.

Print advertising revenue was down 5.1 percent to $67.8 million.

Advertising revenue broken down by category was:

  • Local, down 2.8 percent to $23.4 million
  • Classified, down 9.1 percent to $18.4 million

◦                      Classified – employment – down 5.2 percent

◦                      Classified – automotive – down 8.1 percent

◦                      Classified – real estate – down 12 percent

  • National, down 22 percent to $3.9 million
  • Preprint and other, flat at $22.1 million

In all four of those categories, the percentage change in the year-over-year performance improved compared with the year-over-year change in the third quarter.

In 2011, we began reporting revenue from certain of our digital offerings net of the amounts paid to our digital partners. As a result of this change, reported digital revenues in the fourth quarter decreased 14 percent to $6.6 million and reported pure-play digital advertising was down 14 percent to $4.4 million. If 2010 revenues had been reported on this net basis, total digital revenues in the fourth quarter of 2011 would have been down 3.6 percent and pure-play digital revenues would have decreased 2.8 percent.

Cost and expenses increased slightly in the quarter, largely due to annual incentive awards and the decision earlier this year to restore certain retirement plan benefits.

The expense for newsprint and press supplies increased 9.5 percent in the quarter, due largely to costs associated with additional volumes from the company’s print-and-deliver initiative as well as slightly higher newsprint prices.

Fourth-quarter segment profit in the newspaper division was $9.6 million, compared with segment profit of $14.7 million in the fourth quarter of 2010.

Syndication and other

The “syndication and other” category of the company’s financial statements includes the performance of United Media’s remaining syndication business and a number of other small entities. Since June 1, 2011, Scripps has worked with an external resource to provide cost-effective syndicate services for United Media properties.

In the fourth quarter, revenues were $2.5 million, and segment profit was $364,000. In the fourth quarter of 2010, the segment reported a loss of $396,000.

Financial condition

Scripps had more than $125 million in cash and no debt for more than a year until the bank-financed acquisition of the McGraw-Hill television stations. For that transaction, the company borrowed $212 million, and has entered into a revolving credit agreement for additional borrowing capacity of $100 million.

At December 31, 2011, Scripps had cash and cash equivalents of $128 million, and total debt of $212 million.

The company repurchased 1.6 million shares during the quarter at a weighted average price of $7.39, bringing the year-to-date total to 6.2 million shares. The remaining repurchase authorization, which expires at the end of 2012, stands at $24 million as of December 31, 2011.

Full-year results

Revenue from continuing operations in 2011 was $729 million, compared with $777 million in 2010.

Scripps reported a loss from continuing operations, net of tax, of $15.7 million, or 27 cents per share, compared with net income from continuing operations of $28.9 million, or 45 cents per share, in 2010. Excluding a third-quarter charge for impairment of long-lived assets at four of the company’s newspapers, the net loss would have been 17 cents per share in 2011.

Looking ahead

For year-over-year performance of key metrics in the first quarter of 2012, management expects:

  • Reported television revenues to be up more than 40 percent ; excluding the newly acquired television stations, revenues should be up in the low double digits
  • Reported television expenses to be up approximately 30 percent; excluding the newly acquired stations, expenses should be down in the low-single digits
  • Newspaper revenues to be down in the low- to mid-single digits
  • Newspaper expenses to be down in the mid-single digits

The quarterly expense run rate for corporate and shared services will be about $8 million throughout 2012, but, as is typical for the first quarter, the figure will be about $1.5 million higher due to expensing of annual equity awards for retirement-eligible executives.

The Company reiterated the full-year revenue guidance it provided in January, when it said:

  • Television revenues would increase by more than 50 percent in 2012. That includes more than $100 million of revenue for the stations that were acquired from McGraw-Hill Broadcasting Company on December 30, 2011. Excluding the newly acquired stations, television revenue should increase more than 15 percent, fueled by low-to-mid-single-digit growth of core revenue, and political revenue that should exceed the $42 million figure reported in the previous presidential election cycle.
  • Newspaper revenue in 2012 should be down slightly to approximately $400 million.

In addition, Scripps provided a full-year outlook for depreciation and amortization of approximately $45 million, and capital expenditures of between $20 million and $25 million.

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72% rise in profits at Pearson

February 28, 2012 — Fusion DigiNet

Pearson Plc has reported 2011 Preliminary results.

 

Financial performance

  • Sales up 6% at CER in spite of tough trading conditions in many markets.
  • Adjusted operating profit up 12% to £942m with growth in all businesses.
  • Adjusted EPS up 12% to 86.5p (headline growth).
  • Cash conversion remains strong at 104%; operating cash flow of £983m (£1,057m in 2010, which benefited from an unusually high working capital contribution).
  • Return on invested capital of 9.1%, above Pearson’s cost of capital; ROIC lower than in 2010 largely due to significant acquisition spend and higher cash tax.

Growth markets

Digital revenues up 18% in headline terms to £2bn, now 33% of Pearson’s sales. Substantial digital growth in all parts of Pearson including:

  • Students using digital learning programmes up 23% to 43m.
  • Penguin eBook revenues up 106%; now 12% of total Penguin revenues.
  • FT digital subscriptions up 29% to 267,000; approximately 44% of total paid circulation.

Developing markets revenues up 24% in headline terms to $1bn ($834m in 2010), now 11% of Pearson’s sales.

Other highlights

  •  Operating margins reach 16.1% (up 1.0% points)
  • £896m invested in acquisitions including Schoolnet and Connections Education in North America and Global Education in China.
  • Balance sheet net debt of £499m – approximately £1bn of headroom available for bolt-on acquisitions.
  • Dividend raised 9% to 42.0p, representing Pearson’s 20th consecutive dividend increase.

Outlook

  • Pearson expects to achieve continued sales and operating profit growth in 2012, in spite of tough trading conditions and rapid industry change.
  • Revenues from digital and services businesses expected to exceed revenues from traditional publishing businesses in 2012.

Marjorie Scardino, chief executive, said: “The external environment provides a testing backdrop for these results, and all our industries face some degree of turbulence. But our strategy and long-term planning for change have helped us to another good year to add to our record of persistent out-performance. We believe those qualities, combined with the commitment and innovation of our people, will continue to serve our customers and our shareholders well.”

Financial summary

£ millions

2011

2010

Headline growth

CER growth

Underlying growth
Business performance
Sales

5,862

5,663

4%

6%

1%
Adjusted operating profit*

942

857

10%

12%

7%
Adjusted earnings per share

86.5p

77.5p

12%

Operating cash flow

983

1,057

(7)%

Free cash flow

772

904

(15)%

Free cash flow per share

96.5p

112.8p

(14)%

Return on invested capital

9.1%

10.3%

(1.2)% pts

Net Debt

499

430

(16)%

Statutory results
Sales

5,862

5,663

4%

Operating profit

1,226

743

65%

Profit before tax

1,155

670

72%

Basic earnings per share

119.6p

161.9p

(26)%

Cash generated from operations

1,093

1,169

(7)%

Dividend per share

42.0p

38.7p

9%

* Continuing operations

Divisional analysis

£ millions

2011

2010

Headline growth

CER growth

Underlying growth
Sales
North American Education

2,584

2,640

(2)%

1%

(1)%
International Education

1,424

1,234

15%

15%

4%
Professional

382

333

15%

17%

2%
FT Group

427

403

6%

8%

7%
Penguin

1,045

1,053

(1)%

1%

1%
Total

5,862

5,663

4%

6%

1%
Adjusted operating profit
North American Education

493

469

5%

9%

8%
International Education

196

171

15%

13%

2%
Professional

66

51

29%

31%

10%
FT Group

76

60

27%

22%

17%
Penguin

111

106

5%

8%

8%
Total continuing

942

857

10%

12%

7%

Read the full announcement

UK, London

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Centaur Media acquires Profile Group

February 21, 2012 — Fusion DigiNet

Centaur Media plc, the business information and events group, has acquired Profile Group (UK) Limited, a specialist digital information business for media, PR and marketing professionals, for a total cash consideration of £8m. Profile was founded in 1988 as a print directory business by Robert Barclay.  The management team will be staying with the business.  Revenues in 2011 were £3.1m, with ebitda of £1m, producing a margin of 32%.  The business derives most of its revenues in the UK, but has now launched three of its services in the USA, with encouraging early success.

Centaur has separately secured a £40m four year revolving credit facility in order to fund its acquisition programme.

Profile provides forward planning and contact information to media, PR and marketing professionals to enable them to optimise journalistic workflow and plan future PR and sponsorship campaigns.  Revenues are derived exclusively from subscriptions to a range of digital products which offer complementary services from a single web platform.  Profile’s information brands include Fashion Monitor, Red Pages, Entertainment News, Year Ahead and Foresight News.

Profile will become part of the Business Information Division, alongside digital information and workflow businesses Perfect Information (serving the global corporate adviser market) and VBR (operating in the global clean technology and security sectors).

Profile will benefit from collaboration with Centaur’s existing brands, Marketing Week and Creative Review (serving the marketing and creative agency sectors) and the Headline Group (serving specialist media and PR professionals).

Geoff Wilmot, CEO of Centaur, said, “Profile is a good fit with our core strategic objectives of growing digital subscription revenues in our core markets and expanding our international capabilities. We will accelerate Profile’s growth by: offering an exceptional route to market through our leading brands Marketing Week and Creative Review; the application of the successful Headline Group model to vertical markets served by Profile; and by leverage of Profile’s technology and business model in other parts of the Group. The new revolving credit facility will fund this acquisition and provides us with the necessary resources to support our acquisitions programme.”

UK, London

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Bauer Media Group acquires women’s monthlies “Olivia” and “Naj Magazyn

February 18, 2012 — Fusion DigiNet

The Bauer Media Group has acquired Polish women’s magazines “Olivia” from Marquardt Media and “Naj Magazyn” from Gruner + Jahr. It sees Bauer further strengthen its position as market leader in the women’s segment.

The two monthly magazines together have a joint circulation of 277,125 sold copies per issue (ZKDP Jan-Nov 2011). “Olivia” and “Naj Magazyn” will be available soon in a new look and with new content although the editorial focus will remain on the advice topics of fashion, beauty, cooking, health and psychology.

For Dr Eckart Bollmann, CEO of the Bauer Media Group, the additions to the portfolio in Poland are a further building block in the group’s international expansion strategy: ‟The acquisitions in an important segment for our company strengthen our position on the market. In ‘Olivia’ and ‘Naj Magazyn’ we see strong brands with potential for development. With ‘Świat Kobiety’, ‘Kobieta i Życie’ and ‘Tina’ we have been proving for years that women’s magazines in Poland can achieve long-term success. ’Świat Kobiety’, for example, has notched up the highest number of sold issues in the premium segment of service-oriented women’s magazines for years.”

Germany, Hamburg

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QuinStreet acquires Ziff Davis Enterprise media assets

February 14, 2012 — Fusion DigiNet

Internet marketing and media company QuinStreet has acquired Ziff Davis Enterprise media assets. The assets acquired include websites eWeek.com, CIOInsight.com, Baseline.com, ChannelInsider.com and WebBuyersGuide.com, among others, and one of the largest email and telephone subscriber databases in the business to business (B2B) technology space. These properties support enterprise IT buyers and decision makers in making purchasing decisions. Also, they provide B2B technology vendors with targeted advertising and opportunities to engage with customer prospects online.

“Ziff Davis Enterprise has a rich history in the B2B technology media and marketing space and is synonymous with quality and client service. This acquisition expands QuinStreet’s ability to service our B2B technology clients at scale, with high-quality, targeted, measurable marketing results,” said Doug Valenti, QuinStreet CEO.

The VAR Guy is reporting that Quinstreet paid $17.5 million for the assets. BtoBonline.com is reporting that QuinStreet is planning to cut about 80% of Ziff Davis Enterprise employees. Steve Weitzner, ZDE database CEO, will be leaving the company.

Foster City, CA & New York, NY

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