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Data and MR Firms Stay Put as RBI Sale Starts
Publishing giant Reed-Elsevier is selling off parts of its US Reed Business Information portfolio after reporting a dive in profits. However, research firm Marketcast and information supplier Reed Construction Data will not be among the sell-offs, which are mostly magazine titles.
RBI saw adjusted operating profits fall by 43% in the first six months of this year, a 'very difficult first half' according to the parent firm.
The titles for sale include Broadcasting & Cable and Publishers' Weekly but not the flagship Variety. Reed also announced yesterday that RBI-USA Chief Exec Tad Smith is leaving the company in a month 'to pursue a new job challenge' and will be replaced by current CFO John Pulin.
Reed Elsevier carries just under $8.5 billion in debt, and yesterday announced a major share sale in order to raise funds. Its share price on the London Stock Exchange plunged 14% after the second quarter results were announced.
In a prepared statement, the company said the sale had been 'a difficult decision to reach' but that it had 'decided to focus its efforts and investments on a narrower range of brands and markets', adding ' We have to contend with a far harsher advertising environment than any of us have experienced before.'
Since the beginning of the year, a number of advertising and media groups have consolidated their strength in MR and information markets while trimming ad agency and publishing divisions, citing the more robust nature of the research and analysis sector. In January, WPP CEO Sir Martin Sorrell said his group would move away from its role as a traditional media and advertising supplier, to concentrate on becoming a more insight-led organisation.
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