dmg world media
KEY DEVELOPMENTS
- Operating profit* down by 3% on revenue decline of 13%.
- Strong performance from Middle East business, with profits up 20%.
- Disposals of non-core B2C businesses resulted in a streamlined event organiser with market-leading products.
dmg world media, like the rest of the
exhibition industry, experienced softer
bookings for many of its shows which
translated into lower revenues. Actions
taken in the year on cost initiatives,
together with the continued divestment
of non-core business lines, enabled its
full year operating profit* to be only
slightly below that of last year. Dmg world
media reported an increased operating
margin. Underlying† revenues, adjusted
for non-annual events, decreased by 9%
and operating profit* by 5%.
KEY FIGURES††
BUSINESS TO BUSINESS (B2B)
Revenues were down 10% to £149 million and profits* down 12% to £36 million. Underlying revenues and profits* were down 8% and 9%, respectively. The Dubai sector, comprising construction, interior design and hospitality shows, reported a 19% increase in revenues and a 20% increase in profits*. Performance in the Oil and Gas portfolio was driven by one of its largest shows, the biennial ADIPEC, which more than doubled its profits from its previous show. However, a decline in the profits of its BMI and Australasia businesses had a detrimental effect on the B2B profits. The BMI business was sold in September. During the year, we divested our West Coast gift shows.
BUSINESS TO CONSUMER (B2C)
As a result of disposals in the last two years, B2C is now a small part of the division, with all publications fully divested and only a small number of remaining exhibitions. Overall, the B2C division, driven by a decline in the U.K. consumer business and certain Art & Antiques businesses now divested, performed poorly, with revenues down 24% to £26 million and losses* unchanged at £3 million.
OUTLOOK
dmg world media will continue to focus on its B2B operations in North America, the Middle East, Australasia, and U.K. Recent attendances and booking trends have been more encouraging, but are yet to convert into revenues. dmg world media’s streamlined operating structure and broad portfolio of market-leading products leaves it well placed for any recovery.
8 ad:tech branded market-leading events.
ad:tech
With the successful launch of ad:tech Tokyo in September, dmg world media now runs eight ad:tech branded market-leading, award-winning digital marketing events annually across six countries.
Playing host to thousands of media, marketing and technology professionals from around the world, the shows provide them with the tools and techniques they need to succeed in a constantly evolving digital environment. With events running from March to November, ad:tech’s roster now takes in Beijing, London, New York, San Francisco, Shanghai, Singapore, Sydney and Tokyo.
* Adjusted operating profit (before exceptional items and amortisation and impairment of intangible 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.