DMG WORLD MEDIA

dmg world media had another successful year in 2005. It has been a year of growth through strategic acquisitions and launches, focusing on building its niche business-to-business sector, its new technology sector and broadening its global presence. It also disposed of a number of its non-core businesses.

2005 was a low year in dmg world media’s cycle of events with large non-annual events such as the Global Petroleum Show not taking place and no Index Shows reporting. (In 2004, two Index shows were reported due to the timing of Ramadan.) As a result, operating profit* was £25 million, down 5% on 2004. However, underlying operating profit* (taking account of this cycle and the effect of foreign exchange) grew by 19% and revenue by 11%. In addition, dmg world media disposed of two of its non-core assets in the year: the California Market Center and its business interests in Brazil.

dmg world media has seen strong performances from its Middle East business, its Surf sector, its Business Media International business and from ad:tech: the foundation of the new technology sector, which has already outperformed initial revenue projections.

Financial highlights
Turnover
£152m
Operating profit*
£25m
Operating margin*
16%
* Adjusted operating profit (before exceptional items and amortisation and impairment of
intangible assets)

Much of dmg world media’s growth this year has been underpinned by a number of strategic acquisitions and new launches. These illustrate its continued commitment to diversify its business both by sector and by regional market, building on its already strong bases in the U.K., North America, Australasia and the Middle East. Key acquisitions included the Gastech show held in March, the Bathrooms and Kitchens Expo and Magazine, the ad:tech series of exhibitions and iMedia Communications, the latest addition to dmg world media’s new technology sector. Launches included three shows in India, three shows in North America and new shows in Tunisia, the Czech Republic and Australia. These launches were across a broad range of sectors including chemicals and coatings, home and garden and interior design and construction.

Once again, dmg world media recorded some of its largest ever events. These included the Big 5 in Dubai, Chemspec in Dusseldorf, Germany, Surf Expo in Orlando, USA and the Oil Sands Tradeshow held in Fort McMurray, Canada; the latter two were both recognised by Tradeshow Week in their Fastest 50 growing shows in North America.

Ad:tech Expositions and iMedia Communications, both acquired in 2005, formed the nucleus of dmg world media’s new technology sector, which is forecasting significant revenue growth over the next three years.

In 2006, dmg world media expects further overall growth with nine launches already planned and continuing regional expansion, particularly in fast-growing Asian markets.