UBM beats forecasts and plays down Informa hopes

By Georgina Prodhan, European Media Correspondent

LONDON (Reuters) - Publisher and events organiser United Business Media beat market expectations with an 11 percent rise in first-half operating profit and said it was on track for the year as restructuring progressed well.

UBM (UBM.L), whose news distribution properties include PR Newswire, said its years-long strategy of geographical and product diversification had paid off, putting it in a stronger position than many media rivals as developed economies slow.

Adjusted operating profit reached 90.2 million pounds in the first half, adjusted earnings per share rose 15 percent to 30.1 pence and sales rose 10 percent to 445.6 million pounds.

"We are on track to deliver another good full-year performance," Chief Executive David Levin said in a statement, raising the company's interim dividend 16 percent to 5.6p.

UBM shares rose 0.6 percent to 542p by 8:26 a.m., outperforming a 1 percent fall in the DJ Stoxx European media index .SXMP.

Alex DeGroote, analyst at brokerage Panmure, said the results were ahead of expectations and pointed to the dividend hike. "Companies generally don't do that unless they've got a fair level of confidence in the full year," he said.

UBS analyst Polo Tang said some investors might worry that the company had stopped giving organic revenue growth by unit. "Although numbers were notably ahead, there is less visibility on a divisional basis going forward."

UBM said events, business information and news distribution generated 85 percent of profit in the quarter. The group contains hundreds of trade publications and professional information services and organises trade shows worldwide.