Transcript United News & Media

2001 INTERIM RESULTS
Professional Media
Market Research
ANALYST PRESENTATION
News Distribution
Financial & Operational Summary
Very tough trading conditions
High tech ad decline / US economic slowdown
Revenue down 4%
Operating profit & EPS down 38%
£60m savings secured for 2001: £15m impact in H1
Market share gains in all core businesses
2
Development Summary
£250m cash balance after £1.25bn share buy back
Building market leading positions
Revenue and cost synergies from group operations
Acquisitions: total $150m
PRN:
Cyperus
ANP
NOP:
Allison Fisher
Roper Starch
3
Acquisition of Roper Starch
$88m : 1.3 times 2000 revenue of $69m
Leading consumer trends consultancy
Consumer, healthcare, automotive, IT, financial
50/50 syndicated Vs custom
Significant costs & revenue synergies
New growth opportunities
Roper products to new geographies and markets
NOP World products to Roper client base
Earnings accretive in first full year
4
United’s Strategy
UBM aims to become a key provider of
market information to high growth
sectors including
Information Technology
Healthcare
Media
5
United Presence
IT
Health
Media
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Syndicated Research
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Customised Research
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Editorial & Advertising
Events & Conferences
Consultancy Services
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Educational & Training
News Distribution & Monitoring
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Current Trading & Outlook
CMP June in line with expectations
Not planning on recovery in US in 2001
Quality of CMP titles maintains yield and boosts market share
Market research good progress
Healthcare and syndicated buoyant
News distribution revenues ahead
profits checked by higher investment
2001 savings of £60m weighted to H2
Continued investment in new products
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2001 INTERIM RESULTS
Professional Media
Market Research
News Distribution
FINANCIAL REVIEW
Financial Results
Six months to 30 June
Change %
2001
2000
489.4
511.6
(4.3)
95.6
(37.8)
Interest (£m)
59.5
31.3
(39.8)
-
Post Interest Cont’ op’ profit (£m)
90.8
55.8
62.7
(19.1)
82.0
-
71.7
137.8
(48.0)
18.8
(37.2)
11.0
-
Continuing turnover (£m)
Continuing operating profit (£m)
Discontinued operating profit (£m)
PBT * (£m)
EPS * (p)
Dividend per share (p)
*before exceptionals and amortisation of intangibles
11.8
11.0
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Profit & Loss
Six months to 30 June
Group Turnover
2001 Change Underlying
£m
%
%
Operating Profit
2001 Change Underlying
£m
%
%
302.3
(9.2)
(12.3)
35.4
(49.9)
(51.4)
News Distribution
66.9
11.1
1.9
21.2
1.0
(3.9)
Market Research
76.1
13.9
7.9
10.6
7.1
5.4
445.3
(3.2)
(7.4)
67.2
(33.9)
(36.1)
Consumer Media
29.2
(7.9)
(7.9)
6.0
(16.7)
(16.7)
Online
14.9
(25.9)
(29.9)
(13.7)
(3.8)
(2.8)
489.4
(4.3)
(8.3)
59.5
(37.8)
(39.4)
1.3
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Professional Media
Business Services
Total Continuing
Discontinued
(19.1)
• Offline Margin 15.4% (22.1%) •
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Professional Media
Six months to 30 June
2001
£m
2000
£m
Change
%
Underlying
%
Turnover
210.4
239.7
(12.2)
(17.9)
CMP Asia
24.1
23.7
1.7
1.1
CMP Information
67.8
69.4
(2.3)
5.0
302.3
332.8
(9.2)
(12.3)
25.9
58.6
(55.8)
(57.0)
CMP Asia
9.1
7.8
16.7
(4.3)
CMP Information
0.4
4.3
(90.7)
(86.7)
Total
35.4
70.7
(49.9)
(51.4)
Margins %
11.7
21.2
CMP Media
Total
Operating Profit
CMP Media
11
News Distribution
Six months to 30 June
Turnover
2001
£m
2000 Change Underlying
£m
%
%
US
56.4
52.5
RoW
10.5
7.7
66.9
60.2
11.1
1.9
1.0
(3.9)
Operating profit
US
RoW
Margins %
20.4
18.8
0.8
2.2
21.2
21.0
31.7
34.9
12
Market Research
Six months to 30 June
Turnover
2001
£m
2000
£m
US
44.4
40.6
RoW
31.7
26.2
76.1
66.8
7.6
7.3
3.0
2.6
10.6
9.9
13.9
14.8
Change Underlying
%
%
13.9
7.9
7.1
5.4
Operating profit
US
RoW
Margins
13
United Today
Six months to 30 June 2001
Continuing offline turnover
By Ad % / Non-Ad %
59
Other
Ad’ 15
Non
26 High Advertising
Tech
Ad’
High Tech Advertising = 17% profits
14
Cashflow
Six months to 30 June
2001
£m’s
Opening cash
Less return of capital
B shares outstanding
Investments
Interest received
Profit less net working capital
Capex
Dividend paid
Tax paid
Other
Closing cash
1,553.0
(1,250.5)
61.7
(53.0)
36.1
28.0
(20.1)
(56.8)
(18.5)
(29.2)
250.7
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2001 INTERIM RESULTS
Professional Media
Market Research
News Distribution
Operating Review
Action on Costs
Group Wide
Saved £15m in H1
Secured £60m in 2001
700 staff, or 9% headcount reduction
A third of savings relate to staff
Reductions also include
• Marketing, CMPnet structure
• Office consolidation, administration, systems
Substantial group initiatives in hand for 2002/03
17
Synergies From Group Operations
REVENUE
Share client database for cross promotion and selling
• NOP uses database to create panels
Best practice
• PRN sales training to NOP
• PRN news distribution & webcasting for all tradeshows
COSTS
Central review: economies of scale and remove duplication
Single networks and common webhosting
Standard group applications, shared IT services
18
Professional Media
Six months to 30 June
Turnover
Publications
%
Events
%
CMP Media
79
21
CMP Asia
14
86
CMPi
70
30
Total
72
28
CMP Media
71
29
CMP Asia
14
86
CMPi
47
53
Total
56
44
Operating Profit
19
CMP – High Tech
Monthly Market Share Analysis
By Ad Page Volumes
35.0%
2001
January - December 2000
29.5% CMP
(Based on Ad Pages)
30.0%
25.0%
20.0%
15.0%
10.5% Cahners
10.4% IDG
8.9% Ziff
10.0%
5.5% Penton
5.0%
Source: IMS/Auditor
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Ad Page Volumes in June
CMP
Down 24%
Ziff Davis
Down 39%
IDG
Down 52%
20
Professional Media
CMP Media Yield maintained
Quality of Brands Reinforced
Launch programme: up to $10m
Launch 2 new publications in autumn
• Extend proven brands to new markets
Digital database
• Launch platform for new products
Inside Magazine
M Business on target
21
Professional Media
No change in number of advertisers
Cut backs in level of advertising
Revenue from top 25 broadly as in 2000
Medium & smaller companies reduced
Resilience of core client business
Demonstrates quality of CMP brands
22
News Distribution
Market share: net gain of 70 listed companies
Underlying revenue ahead
US revenue per message up 12%
Reg FD driving message length, secured price increase
US message volume down 12%
Earnings releases up 9% / Reg FD helps trading updates up over 50%
M&A, IPO’s and New products all down approx 40%
Downturn in discretionary masking significant
underlying growth in non-discretionary business
Measuring & monitoring now 13% (11%) of revenue
23
Market Research
Increasing market share
NOP UK revenue growth firmly ahead of UK market
MRI performing strongly, increased client base
Healthcare buoyant, new products
E-market for pharmaceuticals
Sales Force Assessor
MMI & ePocrates strategic alliance
DTC e-monitor
24
Operating Summary
Costs cut
Short term mitigation
Drive synergies
Shared infrastructure
New revenue streams & new products
Integration of acquisitions
Continuing to invest to drive market share
25
Tough market
Firm action on costs
Market share gains in all businesses
Investing to drive future revenue growth
and take further market share
2001 INTERIM RESULTS
Professional Media
Market Research
News Distribution
United Today
Six months to 30 June
Continuing offline by %
2001
64
14
16
Turnover
48
29
14
Operating Profit
28