Get Free Shots from

Friday, February 19, 2010

Reed Elsevier Results and the dangling question over RBI

The Reed Elsevier results presented for the first time by a slightly nervous looking CEO contain some clues not only for the future of Reed but also the future of business media in general. At RBI revenues were down 18% and profits down 34%. The revenue fall was too great to catch up the margin with cost cuts. The exhibition business, a "late cycle" business according to the CEO, revenues were down 21%and profits down 31%. There have been rumours that Reed might consider selling REC, but there is no evidence for that.

REC is decribed as " a good business, well managed. It's just cyclical". As Reed freely admits it has little clue as to when the cycle will be up.

The strategy for RBI is simple and painful. Run it for value. (I thought all businesses did this for all assets), realign the cost base to lower rvenues (so cost cutting still a work in progress), grow the data services business (I wish I had thought of that) and make more asset disposals.

Its hardly radical and its a backfoot strategy forced on the business by the failed sale process, the rocky economic climate and the collapse in print advertising.

Interstingly no questions from the floor of the briefing about RBI which means the City has written it off.

Reblog this post [with Zemanta]

Labels: ,

Wednesday, February 10, 2010

DMGT reports that B2B revenues are down 20% year on year for the last quarter whilst Penton Media in the US has filed for bankruptcy protection. Its still snowing in every sense of the word.

Reblog this post [with Zemanta]

Labels: ,

Tuesday, February 02, 2010

RBI Sells Asian Assets

The Geldof backed Tenalps, home of Kent TV and Teachers TV has acquired some magazine assets from RBI in Asia. This follows the disposal of assets in the USA and Australia. No news of the moneys involved but it won't make much of a difference to the Reed Elesevier balance sheet. What about the UK? What will the RE CEO say in March when Reed is next due to update the world on its strategy. It should be wholsesale change, or asset sales or both, but is more likely to be, holding on for the recovery - which would be a mistake wouldn't it?

Reblog this post [with Zemanta]

Labels: , ,