Reed Exhibitions Reports Decline in '03 Revenue

Reed Exhibitions, the world's largest tradeshow producer, saw its revenue decline by 6 percent in 2003. Negative show rotation was cited for half of the decline.

Reed Exhibitions, a unit of the Reed Business division of Reed Elsevier, reported preliminary 2003 revenue of $773.8 million, down from $858.9 million reported in 2002. (€609 million, compared with €676 million in 2002.) Revenue for the entire division, which includes business-to-business publishing, declined to $2.4 billion last year, from $2.8 billion the previous year. Growth in Asia-Pacific and North American shows was offset by weakness in shows in the U.S. manufacturing sector and in Europe, Reed said, adding that 2003 operating profits declined by 14 percent, or 3 percent when negative show rotation was factored in. Positive show rotation is expected to improve the exhibitions unit's revenues this year.

Mark Armour, CFO of parent company Reed Elsevier, praised the unit's results, considering that most markets were weak and that business travel was hampered by the Iraq war and outbreak of severe acute respiratory syndrome. "This represents a very resilient performance," he said during a conference call with analysts, adding that 20 new shows were launched in 2003.

Gerard van de Aast, Reed Business CEO, was optimistic about the exhibitions unit's performance this year. "The current trend in the business is certainly looking positive," he told analysts.

Shows in the second half of the year are looking particularly strong, Armour said.

Tradeshow Week is a publication of Reed Business Information U.S. which, like Reed Exhibitions, is a business unit of Reed Business.