Informa Group PLC
1 November 2001
1st November 2001
INFORMA GROUP PLC
The escalation in international political tension and the resulting downward
pressure on commercial activity since September 11 on top of already weakened
market conditions, particularly in the IT and Telecoms markets, have created
challenging trading conditions for our important last quarter.
Delegate attendance at our UMTS telecoms event, held in Barcelona earlier this
month, reached 600, which represented the lower end of our expectations.
Related sponsorship and exhibition income was 40% higher than last year. The
overall net profit of the event was 50% lower than in 2000 when some 2500
delegates attended.
This lower attendance, which was undoubtedly affected by concerns over air
travel, reflects a trend which we have seen across a wider range of our
international events since the terrorist attacks in the United States.
Reluctance to travel internally within the US has also affected attendances at
the Life Sciences events we run there. Overall delegate attendance in
September was 20% below our expectations. Attendances in October events have
improved but are still likely to be 15% lower than expected. The impact of
these delegate reductions has been mitigated by continuing strong sponsorship
and exhibition sales and cost control initiatives. We estimate the net profit
impact of lower than expected delegate numbers in the two months September and
October combined will be around £2m.
Publication subscriptions, which makes up some 25% of total group revenue,
remain firm with renewal rates continuing at around 80%, the same level they
have consistently achieved through the economic cycle. But we have seen some
slowdown in advertising spend particularly in our maritime and financial
publications in the last two months. September advertising income across our
range of business titles was some 25% below September 2000. Again, October has
seen an improvement on September levels but will still fall 15% below the same
month last year. Advertising accounts for some 11% of group revenue.
We are continuing to reduce our cost base, including further lowering of
headcount, to defend our operating margins. We have incurred restructuring
charges of some £4.5 million which will largely benefit 2002.
Enquiries:
David Gilbertson, Informa Group, 0207 453 2222
Fiona Piper, The Maitland Consultancy, 0207 379 5151
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