Expomedia Group Has Strong First Half

In reporting its earnings for the first six months of 2007, Expomedia Group announced its first operating profit ever in the first half of a year, as well as a 33-percent increase in revenue compared with the same period in 2006.

Operating profit on continuing operations for the first half of the year were £800,000 ($1.6 million) compared with a £200,000 ($400,000) loss in the first half of 2006. Revenue for the first half amounted to £17.4 million ($35 million), compared to £13 million ($26.2 million) a year ago.

Expomedia Group CEO Mark Shashoua attributed the successful six-month period to strong advance bookings for 2007 (up 45 percent from a year ago), an increase in conference revenue of 70 percent over the year-ago period, three acquisitions and continuing progress in the company's core markets of Russia, India, Germany, Poland and the United Kingdom.

"2007 is a watershed year for the group," Shashoua said, "and the board has now refocused the business on the markets and products that will deliver the greatest return on investment."

The first two quarters of the year were marked by substantial acquisitions. In its largest deal since the company was founded in 2000, Expomedia acquired the United Kingdom's Homebuyer Events, a series of real estate shows that includes the largest residential investment property exhibition in the country, The Property Investor Show. Also in the U.K., it acquired the World Food Market, the country's largest ethnic food tradeshow.

Expomedia acquired a 90-percent interest in Exposystems, a company that organizes IT and telecommunications conferences in Moscow.

The company's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was £1.3 million ($2.6 million), compared with £700,000 ($1.4 million) in 2006. Finally, Expomedia had £8.2 million ($16.5 million) in cash on hand at the close of the second quarter.