UBM Revenue up 9 Percent in 2011
London-listed media company, UBM, released its full-year results for the year ended 31st December 2011. UBM’s revenues were up 9.3 percent year-on-year from £889 million to £972 million. Adjusted group operating profits increased 18 percent from £172 million to £202 million.
Revenues from the company’s events business, which accounted for more than 40 percent of overall revenue, were up 28% year-on-year at £397 million, compared with last year’s £310 million. Adjusted group operating profits increased from £93.5 million to £135 million, up 45 percent. The company also highlighted growth that was driven by the positive biennial effect, where biennial events revenues jumped 96 percent last year.
UBM continues to report strong performances from its businesses in emerging markets. Revenues generated from these markets increased by more than 24 percent. In particular, revenues generated in China (£146 million) surpassed Europe (£143 million) for the first time.
David Levin, UBM’s CEO, commented, “These results are the fruit of our consistent strategy to focus on providing marketing, communications and data services, in winning formats, to thriving business communities. Our Emerging Markets revenues grew by more than 24 percent during 2011 and contributed just under a third of our overall profits: in 2011 we generated more revenue in China than in Europe for the first time. Our Events business performed particularly well and 1.7 million people attended UBM events in 2011, up from 1.3 million in 2010 with profits growing by 45 percent.”
Until recently, the opportunity to have a celebrity attend an event, attach themselves to a name-brand or endorse a certain product or idea was untouchable. The thought of paying a person to promote a product was seen as something only Fortune 500 companies could afford. Social media has changed all that with brands and businesses utilizing celebrity influencers to connect directly with their demographics and increase sales and profits.