Penton Sells Off International Properties
Staff -- Tradeshow Week, 5/2/2005
At the same time that Penton Media is celebrating its first year-over-year revenue increase since 2000, the company also revealed that it has raised $5.2 million by selling assets.
Penton, which had only $7.7 million in cash, in December raised $800,000 from selling its interest in PM Germany, according to the company's annual report with the U.S. Securities and Exchange Commission. PM Germany was a joint venture established in 2000 to produce European fairs and publications.
Company officials also raised $4.4 million by selling all but a 10 percent stake in Penton's U.K. operations. The properties include Intl. Leisure Industry Week, Internet World U.K. and the Service Management Europe exhibition and magazine.
The company identified the buyers as Northern Venture Managers and Andy Center, U.K. managing director. CEO David Nussbaum said in a statement that "the portfolio we are divesting does not fit our strategic growth objectives."
Penton in 2004 generated $212.7 million revenue, up nearly $7 million from $206 million in 2003. Event revenue climbed to $51.4 million, up more than 16 percent from $44.2 million in 2004. Online revenue was up nearly 27 percent, and publishing down by about 3 percent.
Penton narrowed its net loss to $67.2 million, from $93.1 million in the previous year. The company in February trimmed $5.5 million from its $329.1 million in debt.
Penton also revealed that it will pay $200,000 stemming from last December's cancellation of an agreement with a former employee — presumably Carl Pugh of Radius Events — to manage certain tradeshows. Had it not been canceled, the agreement would have cost Penton $700,000 this year.
