UBM hit by slowdown in US

Publishing group United Business Media showed it was still feeling the impact of the slowdown in its key US hi-tech market today as it fell into the red for the first half of the year.

Chief executive Lord Hollick said there had been "no let-up in the difficult market conditions" across the business and revealed the group had wiped a further £55m (€87.2m) from its cost base.

Some 500 jobs were cut by UBM in the six months to June 30, with a reduction of at least 30% in the US business-to-business division CMP Media as well as the group’s PR Newswire news distribution arm.

CMP Media has been rocked by the impact of the advertising slowdown in the US hi-tech sector and results today showed revenues in the division were down 37.8% in the first half to £136.5m (€216.5m).

While its market share was up 4% at 29%, the revenue fall meant CMP Media made operating losses of £9.2m (€14.6m) in the half-year, compared with profits of £14m (€22m) a year ago.

UBM added that the sluggish US economy had also affected the volume of releases at PR Newswire due to the reduction in merger and acquisition activity and the number of companies floating on the market.

UBM’s shares fell 19p to 295p in early trading in London today, a drop of 6%. The group has re-based its dividend policy and shareholders will receive an interim payout of 3p per share this time round.