2007 News Releases
United Business Media restructures CMP Technology
14 June
Reshapes US-based technology media
business to better meet customer
and audience requirements
United Business Media plc today announces that the implementation of the next phase of CMP Technology’s strategy is now under way. CMP Technology has put in place a set of changes that will align both its product portfolio and its organisational structure to the changing needs of its audiences and its customers, and position the business to take advantage of growth opportunities in events, online and data markets.
These are the latest steps in the longer term development of CMP Technology’s business and follow the investment of almost $150 million over the course of more than two years in acquiring online and events brands and businesses to rebalance CMP Technology’s product portfolio. The changing mix of the business is illustrated in the table below. In the year to date, the growth in CMP Technology’s online and event revenues has offset the decline in print revenues, and operating margins and operating profit have both grown in comparison with the prior year.
|
% revenues |
2004 Actual |
2007* |
|
|
73 |
38 |
|
Exhibitions |
15 |
40 |
|
Online |
12 |
22 |
|
|
100 |
100 |
* Pro forma full year
CMP Technology is restructuring its print portfolio to focus on its principal market-leading brands. The restructuring will entail the closure of certain titles and the merger of a number of other titles; for further details see www.cmp.com. Overall, this phase of the project will reduce CMP Technology’s annual revenues by around $15 million. The plan will also see CMP Technology reduce its current headcount of around 1,150 by more than 200, reducing its annual salary costs by more than $20 million. Implementation will be substantially completed within the next two weeks and will result in costs of around $12 million. These costs will be reported as an exceptional charge in the first half of this year.These actions are a further development to the decentralisation of CMP Technology into three operating units (Business Technology Group, Channel Group and Technology Innovators Group) and the resulting rationalisation of the business’s property requirements announced as part of the 2006 results.
UBM will release a pre-close period trading update on Wednesday 27 June, in advance of the announcement of UBM’s results for the first half of 2007 on Friday 27 July.- Ends -
Contacts
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Media |
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Peter Bancroft |
Director of Communications |
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Direct telephone |
+44 20 7921 5961 |
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Chris Barrie |
Citigate Dewe Rogerson |
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Direct telephone |
+44 20 7282 2943 |
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Mobile |
+44 796 872 72 89 |
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Analysts/Investors |
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Direct telephone |
+44 20 7921 5095 |
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Nigel Wilson |
+44 20 7921 5019 |
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Andrew Crow |
+44 20 7921 5940 |
Notes to Editors
About United Business Media Plc
United Business Media Plc is a leading global business media
company. We inform markets and bring the world ’s buyers and
sellers together at events, online, in print, and with the
information they need to do business successfully. We focus on
serving professional commercial communities, from doctors to game
developers, from journalists to jewellery dealers, from farmers to
pharmacists around the world. Our 5,000 staff in more than 30
countries are organised into specialist teams that serve these
communities, helping them to do business and their markets to work
effectively and efficiently.
For more information, go to www.unitedbusinessmedia.com.
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