Revenue Up at Reed Expo, Jupitermedia

By Margo McCall -- Tradeshow Week, 2/28/2005

Reed Exhibitions reversed the trend of the previous year and finished 2004 with a 6-percent revenue increase.

The world's largest exhibition producer generated €619 million in revenue ($809.9 million) in 2004, up from €609 million ($796.8 million) in 2003. Operating profits were up 7 percent.

Mark Armour, CFO of parent company Reed Elsevier, credited the launch of five new exhibitions in China and two in Russia for contributing to the improved year-end results. Established annual shows and newly launched events helped deliver a 4-percent sales gain, while the remaining 2 percent of the revenue increase was chalked up to positive show rotation, company officials said.

Reed Exhibitions (which has the same parent company, Reed Elsevier, as Tradeshow Week) reported strong 2004 growth for U.S. security, jewelry and gaming shows; internationally, shows covering the travel and property sectors fared well. Growth was reportedly robust for exhibitions held in France and the Asia Pacific region.

In 2003, Reed Exhibitions saw its revenue decline by 6 percent. The company blamed half of the decline on negative show rotation. Weakness in the U.S. manufacturing sector and in Europe also contributed, as did a business travel market depressed by SARS and the war in Iraq. Between 2002 and 2003, operating profits declined by 14 percent, or 3 percent when negative show rotation was factored in.

Jupitermedia, meanwhile, reported higher 2004 revenue and profit in all its business segments, including events. The producer of 15 information technology conferences and expositions per year generated $9.9 million in events revenue in 2004, compared with $8.3 million in 2003. Together, the events produced $4.9 million in profit.

Overall, Jupitermedia's 2004 revenue of $21 million compared with 2003 revenue of $15.2 million.

Jupitermedia CEO Alan Meckler warned financial analysts, however, that event revenue would shrink this year as the company reduces the number of conferences and expositions from 25 to 15.

"We have started to cut back on new events," he said. "Therefore in the coming quarters of this year, you may see some changes in revenue being down."

Nine of the 15 shows set for 2005 fall under the Search Engine Strategies brand, only three of which will be held in the United States. Meckler said the Feb. 28–March 3 Search Engine Strategies Conference & Expo at the Hilton New York is set to generate more than $2 million in revenue, compared with the $800,000 generated by the 2003 show. "I think we can expect some extraordinary gross margins," he said.