Events, marketing and publishing group UBM has maintained full year guidance after a solid first quarter performance from its Events business offset weakness elsewhere.
Total revenue in the first quarter rose 11.1%, or 6.9% on an underlying basis, to £264.2m from £247.7m the year before.
The Events business was the star performer, with revenue up 46.4% (underlying: +19.3%) to £123.1m from £84.1m the year before. Underlying changes in revenue for the other parts of the business were as follows: PR Newswire +2.0%; Data Services -4.1%; Marketing Services - Online +7.8%; Marketing Services - Print -13.4%.
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Based on the strong first quarter, UBM now expects that underlying growth for Events for the full year will be in the range of 10% - 12%, slightly higher than previously anticipated, although full year margin guidance remains unchanged.
Forward bookings, as at March 31st 2012, of UBM's 2011 top 20 events running in the next 12 months are up 11.0% compared to last year.
The outlook for PR Newswire and Marketing Services is not so good, with the group indicating growth will be at the lower end of its guidance ranges.
Group adjusted operating profit rose by 25.8% to £56.1m from £44.6m in the first quarter of last year. Again, the Events business was setting the pace, with adjusted operating profit up 53.0% to £42.4m from £27.7m the year before.
Adjusted operating profit was unchanged in the PR Newswire business, and was down 11.2% on the Data Services side. Online Marketing Services' adjusted operating loss narrowed to $1.8m from £2.1m the year before while Print Marketing Services slipped into the red, losing £0.9m after making a £0.2m profit the year before.
The operating loss attributed to Corporate Operations widened to £4.6m from £3.6m the year before.
"Although conditions in a number of our markets remain challenging, and year-on-year comparisons will get tougher as the year progresses, the business is performing well, and we maintain our consolidated guidance for 2012," said David Levin, Chief Executive Officer of UBM.
UBM's consolidated net debt stood at £502.0m as at March 31st, down from £526.4m at the end of 2011.
JH
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