Reed Elsevier boosted by exhibitions

Publishing and events group Reed Elsevier has surpassed first-half forecasts, as the advertising market stabilized and attendance at exhibitions increased

Reed Elsevier said the forecast for its exhibitions division was improving, after first-half revenues at the unit were up 9% to £383m, as several large biennial shows took place this year but not in 2009. However, the publisher reported group revenue declined 1% year on year from £3.06bn to £2.99bn, in the six months to June 30, though underlying turnover increased 1%.

Chief executive Erik Engstrom said: “We are seeing an emerging economic recovery in exhibitions. Not just our revenue decline moderating but also we’re seeing increasing attendance levels at most of our annual events.”

But Reed said recovery in its professional publications, which are subscription based, would be slow. Chairman Anthony Habgood said in a statement: "The subscription nature of much of our revenues, whilst providing considerable resilience in the recent downturn, means that growth will lag improvements in economic conditions."

Pre-tax profit skyrocketed from £188m to £412m, as last year the group was hit by charges related to the sale of some businesses, while earnings per share jumped from 7.1p to 13.2p. Adjusted operating profit dropped from £782m to £758m, surpassing forecasts of £715m.

Source: Financial Times, Reuters

Published on: 30/07/2010 12:17:00