Strategic acquisitions and organic launches in emerging markets and the US have helped Reed Exhibitions report a 23 per cent rise in revenue in the six months to 30 June.
According to its latest half-yearly financial year, Reed Exhibitions chalked up a 32 per cent revenue rise year-on-year to £486m, or 23 per cent underlying revenue growth (12 per cent excluding cycling).
Adjusted operating profit also lifted to £151m, up from £113m in the first half of 2011. Reed Exhibitions represented 18 per cent of parent company Reed Elsevier’s total adjusted operating profit.
According to Reed, its first six months benefited from the timing of annual shows, adding four percentage points to growth. A major highlight was double-digit revenue growth in emerging markets after investment into higher growth markets, new launches and small selective acquisitions.
Recent deals include expansion of its partnership with India-based Manch Communications, a joint venture in China to launch the new Reed Hongda Exhibitions business in the automotive aftermarket, and a JV with Panorama Group in Indonesia for the mining industry.
Reed Exhibitions launched 15 new events in the first half of the year. The US also generated double-digit revenue growth, excluding biennial cycling effects.
In contrast, Reed Exhibitions reported low to mid single-digit growth in Europe. As a whole, Reed Elsevier chalked up a 5 per cent revenue increase to £3.05bn for the first half of 2011, after adjusting for acquisitions and disposals and currency translation.
“We also continued to support organic growth and build on our market leadership by completing a number of small but selective acquisitions in high-growth markers and buying out our joint venture in Brazil,” Reed stated in its half-yearly report.
“We continue to expect strong financial year 2012 underlying revenue growth (excluding cycling), albeit moderated somewhat from the double-digit rate that was achieved in our first-half as the effect of annual show timing unwinds.”
Chief executive Erik Engstrom (pictured) said Reed continues to transform its core businesses through organic growth supported by select smaller acquisitions.
“The outlook for the macro economic environment remains uncertain, but based on our good first-half results and the continuing improvement in the quality of our earnings, we expect to deliver underlying revenue and profit growth for the year in line with our expectations,” he said.
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