UBM plc, a leading global events-led marketing services and communications company, released results on the performance of its events for the first quarter of 2014. Unaudited results for the three months ended on Mar. 31.
Meeting projections for the year, revenue from the first quarter reached £163.0 million, only a slight decline from £188.5 million in the first quarter of 2013.
“UBM’s results for the first quarter were in line with our expectations. First quarter revenue reflects adverse currency movements, the phasing impact of events that ran in Q1 2013 running later in the year and restructured marketing services,” explained Robert Gray, chief financial officer, UBM plc.
Reported revenue reflected strong foreign exchange headwind of £13.5 million and adverse quarterly phasing of £10.7 million. After adjustments for product discontinuations, the underlying revenue decline was reported at 3.6 percent with adjusted operating profit coming in at £29.4 million.
“Events forward bookings remain robust, and we expect good growth in the Emerging Markets and large U.S. shows running through the balance of 2014,” Gray added. “We’re getting traction in our reshaped marketing services offering, resulting in improved profitability. PR Newswire has made a good start on delivery for the year, and trends in the U.S. are encouraging. Our guidance for 2014 is unchanged.”
Revenue from events at £93.3 million was less than the £107.5 million reported during the same period in 2013. A reported revenue decline of 6 percent, which was adjusted to 4 percent for product discontinuations, reflected foreign exchange headwind and adverse phasing.
According to officials, robust growth from UBM plc’s U.S. shows, led by Game Developer Conference and MD&M West, and very strong performance in Emerging Market shows, particularly Sign China and Turkey Jewellery, more than offset the expected decline in the UK, notably at Ecobuild.
Q1 adjusted operating profit was £24.3 million, representing an operating margin of 26 percent. Declining revenues in UK shows as well as continued investment in geographic and brand expansion, improved visitor experience, and health and safety initiatives affected numbers in 2014.
Forward bookings for UBM plc’s 2013 Top 20 events running in the next 12 months are reportedly up to £136.7 million, an increase of 22.2 percent compared to their level a year ago.
For more information, visit www.ubm.com.