DMG World Media
KEY DEVELOPMENTS
- STRONG PERFORMANCE FROM B2B DIVISION, DRIVEN BY OIL AND GAS AND TECHNOLOGY SHOWS
- GLM INTEGRATED SUCESSFULLY AFTER ACQUIRING REMAINING 51% INTEREST
- REDUCED B2C PRESENCE THROUGH SALE OF NORTH AMERICAN HOME SHOWS
DMG World Media had a good year with revenues up 23%, profits* up 40% and an increased operating margin. On a like-for-like basis, underlying† revenues increased by 2% and operating profit* by 8%. An exceptional operating charge of £4 million was made for reorganisation and restructuring costs.
KEY FIGURES††
BUSINESS TO BUSINESS (B2B)
Revenues and profits* were up 18% and 30%, respectively. In the Technology Sector, a strong performance from Evanta’s existing executive summits and nine new launches contributed to the sector’s 20% profit* growth. Profits from the Oil and Gas portfolio also increased substantially. This was driven by the largest shows, the biennial Global Petroleum Show and the now annual Gastech, which increased by 35% and 52%, respectively, from the previous shows. The Dubai sector, comprising construction, interior design and hospitality shows, reported a 15% increase in revenues, but a 1% decline in profits* due to investment in people and infrastructure.
BUSINESS TO RETAIL (B2R)
The B2R division grew significantly in the year, following the acquisition of the remaining interest in GLM. B2R's revenues more than doubled and profit* grew 93%. In the prior year, GLM was reported as an associate. On a like-for-like basis, GLM grew its profits* by 8% due to the strong performance of its premier product, the New York International Gift Fair. The B2R division's overall underlying† revenues were down 1% and profits* down 8%, due to a decline in its US West Coast gift shows.
BUSINESS TO CONSUMER (B2C)
B2C is now a small part of DMG World Media. It contributed 6% of DMG World Media's operating profit*. The North American home shows were sold in July. Overall, the B2C division, driven by a decline in the UK consumer business, the North American home shows and certain Art & Antiques businesses now divested, performed poorly, with profits* declining by £5 million.
OUTLOOK
DMG World Media will continue its focus on the B2B and B2R divisions. We expect B2B to continue its good underlying growth, in both its Dubai and Oil and Gas sectors. For B2R, we expect underlying profit growth from the GLM shows.
The economic climate will have an impact on the rate of growth for certain products, but DMG World Media's broad portfolio of products, with particular strength in the Middle East and in Oil and Gas events, should help to mitigate this risk.
* Adjusted operating profit (before exceptional items and amortisation and impairment of tangible assets).
† Underlying revenue or profit* is revenue or profit* on a like-for-like basis, adjusted for acquisitions and disposals made in the current and prior year and at constant exchange rates.
†† Percentages are calculated on actual numbers to one decimal place.