Global Sources Posts 57 Percent Exhibition Revenue Third-quarter Loss
Global Sources, a leading business-to-business media group based in Hong Kong, has recently reported its financial results for the third quarter ending Sept. 30.
Revenue from continuing operations was US$23.5 million, down from US$31.7 million in 2014. The company also posted an IFRS net loss of US$4.6 million. In the same quarter last year, Global Sources recorded a net profit of US$1.9 million.
The decline in revenue hit all of Global Sources core businesses. Online revenue fell by 15 percent to US$15.9 million. Exhibition revenue plummeted by 57 percent to US$4.1 million in 2015.
The company’s print revenue posted a decline of approximately 18 percent to US$1.3 million.
Contributing to the decline, Global Sources completed the sale to UBM Asia of its joint venture, eMedia Asia, in the second quarter and also discontinued several overseas trade shows, which had previously been held in the third quarter of 2014.
“The third quarter revenue reflects our decisions to focus on our core business of cross border B2B trade and on our Hong Kong trade shows… Our strategy is to focus on the markets and products that offer us the greatest opportunities for growth,” said Merle A. Hinrich.
The company also lowered its second half of 2015 revenue guidance for investors. Revenue from continuing operations is forecast to be between US$83.0 million and US$84.0 million.
Revenues in the second half of 2014 were US$91.8 million. Management attributed this to expected weak performance of its online revenue.