Reed lines up sale of B2B titles

by Tristan O'Carroll, Media Week 21-Feb-08, 14:50

LONDON - Publishing giant Reed Elsevier has put its business-to-business arm, Reed Business Information, up for sale.

The publisher of titles such as the New Scientist is being put on the block by its owner as part of a move to cut its reliance on advertising.

Reed Elsevier chief executive Sir Crispin Davis said RBI's advertising revenue model did not fit well with the company's future subscription-based focus.

During 2007, RBI reported revenues of 1.3bn euros (£906m) and adjusted operating profits of 174m euros (£131m) with ad revenues making up 60% of revenues.

Reed Elsevier said: "Although RBI has had considerable success in developing high-growth online services, its advertising revenue model and its inherent cyclicality fit less well with the subscription-based information and workflow solutions focus of Reed Elsevier's strategy."

The precise method of divestment of RBI will be the subject of review in the coming months, the statement said.

Comments

ROSS FURLONG - 21/02/2008

A great opportunity for an aquisitive B2B publisher. How about Brand Republic's very own Haymarket? They've run a successful controlled circulation publishing model for years.

DECLAN GANE - 28/02/2008

Interestingly, the Reed Exhibitions business will be retained. Reed Exhibitions saw revenues 13% ahead at constant currencies, or 12% excluding acquisitions and disposals. Strong growth was seen across the show portfolio with particular success at the Mipim international property show in Cannes and the JCK jewellery show in Las Vegas. Adjusted operating profits were up 11% at constant currencies, or 8% excluding acquisitions and disposals, held back by the cycling out of the contribution from biennial joint venture shows. Excluding the cycling of shows, underlying revenue growth and adjusted operating profit growth were 10% and 11% respectively. Thirty new shows were launched in the year, in sectors ranging from personal care to aerospace and from Argentina to China. The portfolio was also added to through the acquisition of a joint venture interest in Alcantara Machado, the leading show organiser in Brazil, and of a group of six international aerospace shows. Trevor Foley, Group Chief Executive Events Industry Alliance