Wednesday, July 26, 2006
UBM, M-H Financials...and Thoughts on China
A few relevant financial results announcements.
United Business Media, owner of the various CMP Media properties, turned in a stellar 25% increase in revenues and profits for the first six months of 2006. This growth was driven primarily by the company's acquisition strategy, which it has decided to accelerate. (Underlying revenue--without the effect of acquisitions--was up 3.2%, but underlying operating income dropped 2.2%).
McGraw Hill posted a 13% increase in second quarter profits. Says MarketWatch: "Revenue for the business-to-business group rose 2.1%. The group includes J.D. Power and Associates, BusinessWeek, construction, energy products and services, and Aviation Week. Growth in information products and services helped offset declines in advertising at the business-to-business group."
Interestingly, Business Week's global edition saw ad pages decline nearly 12%, driven by the shutdown of its Euro and Asian editions. The folks at United Business Media saw different results, especially in Asia, where underlying revenues and profits were up more than 8%, "driven principally by the growth of the exhibitions in Hong Kong, China and Japan."
As my fellow blogger Paul Woodward recently pointed out, newspaper and magazine ad revenues have declined in China. Business Week seems to have encountered this phenomenon; UBM's CMP Asia division is growing because of trade shows, not print ads.
American Business Media plans to take a group of b2b media execs to China in October. That's a good move, since the China market has never been an easy one, and our US B2B tendency to start with print, and then line extend to events and online, doesn't seem to work well on that side of the Pacific. (I hope ABM will have Hong Kong-based Paul Woodward and Berlin-based Hugo Martin speak to its China junkateers. Both have extensive experience with the market.)
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United Business Media, owner of the various CMP Media properties, turned in a stellar 25% increase in revenues and profits for the first six months of 2006. This growth was driven primarily by the company's acquisition strategy, which it has decided to accelerate. (Underlying revenue--without the effect of acquisitions--was up 3.2%, but underlying operating income dropped 2.2%).
McGraw Hill posted a 13% increase in second quarter profits. Says MarketWatch: "Revenue for the business-to-business group rose 2.1%. The group includes J.D. Power and Associates, BusinessWeek, construction, energy products and services, and Aviation Week. Growth in information products and services helped offset declines in advertising at the business-to-business group."
Interestingly, Business Week's global edition saw ad pages decline nearly 12%, driven by the shutdown of its Euro and Asian editions. The folks at United Business Media saw different results, especially in Asia, where underlying revenues and profits were up more than 8%, "driven principally by the growth of the exhibitions in Hong Kong, China and Japan."
As my fellow blogger Paul Woodward recently pointed out, newspaper and magazine ad revenues have declined in China. Business Week seems to have encountered this phenomenon; UBM's CMP Asia division is growing because of trade shows, not print ads.
American Business Media plans to take a group of b2b media execs to China in October. That's a good move, since the China market has never been an easy one, and our US B2B tendency to start with print, and then line extend to events and online, doesn't seem to work well on that side of the Pacific. (I hope ABM will have Hong Kong-based Paul Woodward and Berlin-based Hugo Martin speak to its China junkateers. Both have extensive experience with the market.)
