(Reuters) - British event organiser Informa Plc (INF.L) on Wednesday raised its cost savings target from the acquisition of rival UBM Plc and posted a rise in first-half revenue and adjusted profit, benefiting from the acquisition and strong demand in the exhibitions market.
Informa, which organises over 500 exhibitions each year, stuck to its 3.5 percent underlying revenue growth forecast for 2018, including UBM’s growth contribution.
As companies look for ways to connect directly with customers in a changing media and advertising landscape, event organisers such as Informa and UBM benefit from their focus on business-to-business customers.
Informa, which closed the £3.9 billion UBM purchase last month, now expects cost savings of £75 million by the end of 2021, higher than the £60 million it estimated in January.
However, Informa expects to book a one-off cost of £100 million from delivering the total cost savings target.
The FTSE 100 firm said it was on track to deliver its cost savings target of 50 million pounds in 2019 and cautioned that cost synergies will have little impact on adjusted profit this year.
Informa’s adjusted operating profit rose to 294.4 million pounds for the six months to June 30, from 284.9 million pounds a year earlier.
The company, which has over 11,000 employees worldwide, said revenue rose 4.6 percent to 957.1 million pounds.
Reporting by Muvija M in Bengaluru; Editing by Amrutha Gayathri