London – United Business Media (UBM) divided its CMP Technology group into four autonomous business units that will each focus more intently on the specific target audiences for its various publications and live events.
The reorganization was announced in London on February 29 at the same time UBM was reporting solid earnings for 2007 as well as a successful year for its events portfolio. In 2007, CMP profits rose 30% to $50.1 million, with margins reaching 15.6%, the highest in five years.
The strong performance comes after a three-year transformation in which CMP significantly rebalanced its businesses. CMP evolved from a company largely dependent on its print revenues in 2004 into an integrated media business in 2007 with print, events, online and data-based workflow tools and services. Specifically, print media generated 75% of UBM’s 2004 revenues. In 2007, the balance shifted dramatically. Print products generated 38% of its revenue; 34% came from events; 20% from online products; and 7% from workflow tools and business information services. The company invested $225 million in 18 acquisitions, particularly events and business information products; developed new products and services; and expanded in international markets.
UBM CEO David Levin said 2008 is looking bullish. “UBM’s events portfolio, which is our largest profit contributor, is showing strong momentum,” Levin said. “Revenue bookings for our top 20 shows, which generated close to 100 million pounds (about $198.6 million) in revenue in 2007, are running more than 10% ahead of 2007.”
Levin said the reorganization would grant the leadership of the four units the freedom to develop products and strategies appropriate for each target audience. The separate units will share various administrative, sales and IT functions provided by UBM’s U.S. infrastructure. UBM said no job losses were anticipated in the reorganization.” This is the next step in a strategic evolution of how we serve our technology market – and we are doing it from a position of strength,” Levin said. “Going forward as independent and focused businesses, they will be able to get even closer to their audiences and customers, developing products and services for these communities faster and with focus.” Levin, said that UBM would remain aggressive in terms of acquisitions.
The four new divisions will be led by CEOs reporting directly to Levin:
- TechWeb, formerly CMP Business Technology Group, will be led by Tony Uphoff. It will cater to the business technology industry and includes the Interop, Web 2.0, VoiceCon and Black Hat events.
- Everything Channel, which was formerly CMP Channel, will be run by Robert Faletra. The group focuses on channel execution that supports computer technology sales. It includes the Vision and XChange events.
- TechInsights, previously CMP’s Electronics Group, will be run by Paul Miller. It provides daily business and technology news for the electronics industry. Its events business produces the Embedded Systems Conference series.
- Think Services will combine Game, Dr. Dobb’s Journal, International Customer Management Group and the Game Developers Conference. Philip Chapnick is the CEO. The group specializes in connecting specialized communities using training, certification, educational events and interactive media.
Reach David Levin at +44 (0)20 7921 5000 or firstname.lastname@example.org; Tony Uphoff at (516) 562-5000 or email@example.com Robert Falerta at (516) 562-5000 or firstname.lastname@example.org; Paul Miller at (415) 947-6631 or email@example.com; Philip Chapnick at (516) 562-5000 or firstname.lastname@example.org