Reed Exhibitions and UBM Media’s events business reported substantial growth in both revenue and operating income last year, according to 2012 financial reports released by both firms Friday.
Reporting strong growth last year with its exhibitions activities in the United States and Japan, moderate growth in Europe and double-digit grow
th in emerging markets like China, Brazil and the Middle East, Reed Exhibitions reported revenue of 854 million pounds ($1.28 billion), up 21 percent from 2011’s 707 million pounds ($1.06 billion).
UBM Media reported 438 million pounds ($658 million) in 2012 revenue from events-related activity, up almost 12 percent from the year before.
Adjusted operating profit for Reed Exhibitions in 2012 was 210 million pounds ($315 million), up 26 percent from the previous year. For UBM Media, adjusted operating profit for events was 142 million pounds ($213 million), up 7 percent from 2012.
In its review of the year, Reed Exhibitions noted that it launched 30 new events around the world and made several acquisitions. In Brazil, it took full ownership of the joint venture, Alcantara Mac
hado, it created several years ago and, in Turkey, created a new joint venture with that country’s largest tradeshow organizer, Tuyap.
UBM reported that events account for more than half the company’s total revenue and nearly three-quarters of its adjusted operating profit. Its 20 largest shows made up nearly half of all annual events revenue. UBM launched 22 new shows last year, primarily in China and India, and invested 30.5 million pounds ($49 million) in the acquisition of eight events businesses.
“We grew overall revenue and profits, with robust underlying revenue growth in our key events businesses,” says UBM CEO David Levin in a statement.
In its outlook for 2013, Reed Exhibitions officials say they anticipate similar performance in most of its global markets, cautioning however that the cyclical nature of the business (this being the “out” year for some major biennial events) may lead to a reduction in revenue growth of 5 to 6 percent.
“Although the outlook for the macro environment, and its impact on our customer markets, is mixed, we have entered 2013 with positive momentum,” says Reed Elsevier CEO Erik Engstrom.
Similarly, UBM anticipates organic growth in 2013, although the phasing of some shows may lead to subdued performance in some quarters and substantial uplift in the second half due to the fact several biennial shows will be held during that period.