Primedia Reports Profit Declines in 2004
Staff -- Tradeshow Week, 3/14/2005
Primedia, producer of about two dozen business exhibitions, reported 2004 net income of $35.5 million, down from $38.9 million in 2003. The company expects 2005 growth in the low- to mid-single digits.
Overall 2004 revenue of $1.3 billion was up slightly from 2003. Revenue last year increased for Primedia's enthusiast media and consumer guides sectors, as well as for the business information sector that houses Primedia Business Exhibitions. Revenue declined in the education sector, however.
The company's recent sale of its About.com Web sites to the New York Times for $410 million prompted analysts to inquire during Primedia's conference call whether the divestiture of other business units is planned.
The company apparently has no plans to put any of its businesses, including exhibitions, on the market. Growth is on the horizon for all three remaining units, company officials said.
"We do not have an imperative to sell assets to improve our balance sheet. Our balance sheet is actually looking relatively healthy," Chairman Dean Nelson said. "We're not going to do it proactively from the standpoint of just trying to sell assets to sell assets."
Nevertheless, CEO Kelly Conlin cautioned that a sale could result "if there's an asset that's worth more to others than it is to us."
