LONDON (Alliance News) - UBM PLC Friday said its first half results were in line with expectations and said its full year outlook remains unchanged despite pretax profit dropping on the back of a number of exceptional items.
The FTSE 250-listed media company reported a pretax profit of GBP58.4 million in the first half of 2015, falling from a GBP82.5 million profit a year earlier despite revenue climbing to GBP456.0 million from GBP361.0 million.
Profit fell on the back of higher depreciation charges of GBP10.8 million from GBP6.1 million, impairments of GBP4.2 million compared to GBP1.1 million and amortisation increased to GBP18.9 million from GBP12.0 million.
Earnings before interest, tax, depreciation and amortisation rose 13% to GBP98.8 million from GBP87.4 million.
UBM maintained its first half interim dividend of 5.3 pence per share.
All of its business units reported a rise in revenue in the period, with its events business revenue rising 33% to GBP285.1 million from GBP214.1 million, its marketing business revenue increased 37.5% to GBP66.7 million from GBP48.5 million and PR Newswire contributed GBP104.2 million in revenue compared to GBP98.3 million a year earlier.
"The outlook for UBM for the year remains unchanged and the board is confident of meeting its expectations for the full year," said UBM.
"In Events, the forward indicators, including for MAGIC, our China shows and our significant biennials, point to a strong second half when many of UBM's larger shows take place," it added.
UBM said it expects its operating margin for the full year to be "slightly ahead" of last year and said its marketing services business will generate a total of GBP130 million to GBP140 million in revenue in 2015 with an operating margin of 13%, and the core distribution business, PR Newswire, is expected to continue to perform well, with growth in line with GDP.
UBM shares were up 4.4% to 529.50 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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