Reed Exhibitions’ Revenues Dip 4 percent in 2015
With events spread throughout the world, Reed Exhibitions was not immune to macro economic pressures last year, posting an overall revenue decrease of 4 percent, compared with the year before.
Overall revenues for Reed Exhibitions in 2015 were $1.21 billion (£857 million), a dip from $1.26 billion (£890 million) in 2014.
“Exhibitions achieved strong underlying revenue growth in 2015, albeit slightly below the prior year, reflecting the macro economic environment,” according to Reed officials. “Underlying revenue growth was +5 percent. After portfolio changes and five percentage points of cycling out effects, constant currency revenue growth was +1 percent.
The difference between the reported and constant currency growth rates reflects the impact of exchange rate movements.
Underlying adjusted operating profit growth was +2 percent. Margins were higher year on year, as total profit growth was slightly ahead of total revenue growth.
Growth in the United States was strong, although slightly below prior year, and growth in Europe was moderate, marginally ahead of prior year.
Growth in Japan remained strong, driven by new launches and strong demand across our events. China continued to see differentiated growth rates by industry sector.
Revenues in Brazil reflected the general weakness of the wider economy. Most other markets continued to grow strongly.
“We continued to pursue growth opportunities and launched 44 new events and completed 10 small acquisitions, primarily in high growth geographies and sectors,” Reed officials said.
Just a few of the acquisitions in 2015 included Legend Exhibitions, the organization behind two of Europe’s leading retail technology and retail design events; CNP Expo, for ecommerce and mobile commerce; and the African Automation Fair.
As far as how 2016 looks, Reed officials said, “We expect the 2015 underlying growth trends to continue. In 2016 we expect cycling in effects to increase the reported revenue growth rate by around 3 percentage points.
Reed Exhibitions has 500 events in 30 countries and in 2015, 7 million active event participants attended their events.