DMG Events divestment leads to 37% revenue decline

The Daily Mail and General Trust’s
(DMG) events division has experienced a decline in revenue of 37 per cent to
£110m (US$172m), due in large part to its recent divestment of businesses.

The company’s profits also dropped
by 19 per cent to £30m, attributed by DMG to the late-cycle nature of
exhibitions and the absence of results from two of its three major biennial
events, Gastech and Adipec, which had a strong year in 2010. DMG’s sole large
international biennial event this year was the Global Petroleum Show, held in
Calgary in June.

Business for DMGT elsewhere was
mixed, with the group’s underlying operating profit rising by 10 per cent,
according to these preliminary figures. Net debt also dropped by £187m to £862m,
however revenue for the group declined by six per cent
overall.

Throughout the year the company has
restructured its events division, which is now organised into five operating
units covering retail, energy, leadership conferences, digital marketing sectors
and a regional unit in the Middle
East.

Its largest show, the bi-annual New
York International Gift Fair, had a strong year with the summer edition experiencing year-on-year growth in terms
of both visitor attendance and revenue. Other key shows include the construction
show Big 5, held in Dubai, and the Global Petroleum Show. Together,
these shows contributed 45 per cent of DMG Events’ underlying
revenue.

The division claims it has
‘aggressively expanded’ its programme
of sponsorship-driven leadership conferences under its Evanta brand, and now
offers events for financial and human resource professionals, as well as chief
information officers.

Commenting on the results, DMGT chief executive Martin
Morgan talked about the company’s move towards digital and online products as
route to future growth.

“Although we remain cautious about
the medium terms outlook,
particularly given continuing economic uncertainties, we are well placed to
continue investing in out business to strengthen their market positions and to
take advantage of improving conditions as they materialise,” he said. “DMGT has
always been a first mover in the media and information industry. We recognise that our
future is largely digital, whether it be in the consumer of B2B markets.”

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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