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UBM 9-month Revenue Rises, Acquires 70% Stake In EFEM - Update

UBM Plc (UBM.L,UBMJF.PK) reported Thursday a rise in revenues for the nine-month period, particularly in the Events segment. The company also maintained its guidance for full-year 2012. Separately, UBM announced it has acquired a 70 percent equity share in EFEM, one of Turkey's leading tradeshow organizers.

Meanwhile, UBM sees continued weakness in semi-conductor industry and expects Data Services revenue and margin to be about 100 basis points lower than the previous segmental guidance for flat revenues and margins of 17 percent. The company's shares dropped about 6 percent in the morning trade.

David Levin, chief executive officer of the company said, "UBM remains on track to deliver the consolidated Group guidance we reiterated at the Interim Results...The Data Services and Marketing Services segments reflects slightly softer market conditions in businesses that serve the global
semi-conductor industry. Our guidance reflects this softness..."

The company noted that it expects to complete the strategic review of Data Services by the end of first quarter of 2013.

In an interim management statement for the nine-month period ended September 30, the company said its total adjusted operating profit was up 11.1 percent to 141.7 million pounds.

Total revenues increased 4 percent to 734.6 million pounds. Underlying revenue growth for the period was 4.9 percent. Events segment revenues increased 21.7 percent and PR Newswire revenues rose 5.4 percent from last year. Meanwhile, Data Services revenues fell 10.6 percent from the preceding year.

UBM said its consolidated guidance for full year 2012, of 4 to 5 percent underlying growth and a margin greater than 19.3 percent, remains unchanged.

Further, the media holding company's board of directors has decided to recommend that the company return to a United Kingdom tax domicile, subject to shareholder approval. UBM anticipates no change in reported tax rates or taxation paid as a result of this change in domicile.

Separately, UBM announced it has acquired a 70 percent equity share in EFEM from its private owners and has formed a joint venture company with EFEM to be called UBM ICC. Financial aspects of the deal were not revealed.

UBM.L is currently trading at 684.5 pence, down 38 pence or 5.26 percent, on a volume of 1.95 million shares on the LSE.

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