Share price movement in B2B media companies involved in Asia

Figure 1: BSG B2B Media Index vs. All Tracked B2B Stocks (price movement over past 12 months)

Figure 2: BSG B2B Media Index vs. All Tracked B2B Stocks (price movement since January 2020)

Quick takes

Online event start-up valued at US$2.1 billion

Hopin is a start-up that offers online events software. The company just raised US$125 million. With all the money being thrown at online events, surely one of these platforms will work properly.

Japan’s attempt at building casinos faltering

The government in Japan has been talking about building integrated resorts (with large convention and exhibition space) for years, but one-by-one leading international casino operators have pulled out. Now it seems Genting is losing confidence in the project.

Macau stalls on opening border with Hong Kong

Hong Kong has recorded single digit COVID-19 cases for weeks. Most of the cases have been “imported” (i.e. infections detected in residents returning from overseas). Hong Kong has also already established a travel bubble with Singapore, but Macau’s leader says Hong Kong’s “situation poses risk to Macau.”

China-U.S. relations threaten tech giants

This storyline has been simmering for months and it will continue for months or even years depending on the state of relations between the world’s two largest economies. The Washington Post has a good summary of the current situation.

CCID Consulting records drop in revenues and net profit

Beijing, 13th November: Last week, CCID Consulting, an IT research and information service provider based in China and listed in Hong Kong, released its financial results for the nine months ended 30th September 2020. Revenues for the period were US$14.2 million. This represents a 27% year-on-year decrease. Net profit in the first nine months of the year dropped 96%, down to US$120,000. Earnings per share in the period were RMB 0.0049 (US$0.0007).

The Beijing-based company attributed the decrease in revenues and profit to quarantine measures adopted in some cities in China due to the outbreak of the COVID-19 virus in the first half of the year. According to the company, it has resumed its business and accelerated its business expansion as at the date of the financial report.

BOL’s profit jumps 20% in Q3

Bangkok, 13th November: Business Online (BOL), a leading online information service provider in Thailand, reported its financial results for the quarter ended 30th September 2020. Revenues grew 11% in the quarter, reaching US$5.6 million. Net profit in the quarter was US$1.95 million, an increase of 20% year-on-year.

The Bangkok-listed company attributed jump in revenues to an increase in special project revenues as well as higher income from its business information services and business decision-making systems in the quarter. The increase in profit was supported by a slowdown in the company’s spending as a result of the uncertainty and on-going impact of the COVID-19 pandemic on business operations.

ProWine China 2020 visitors up nearly 10%

Shanghai, 16th November: ProWine China 2020 concluded on 12th November, attracting a total of over 22,000 trade visitors, an increase of 9.2% compared to the previous edition - despite the fact that strict anti-epidemic measures were applied by the organisers, Messe Düsseldorf and Informa Markets. The organisers claim that ProWine China is the only international wines and spirits trade fair to go ahead since the outbreak of COVID-19 earlier this year.

Running from 10th to 12th November at the Shanghai New International Expo Centre (SNIEC), ProWine China featured a total of 400 wine producers and distributors from 17 countries and regions. In addition to local visitors from Shanghai, trade visitors also came from Beijing, Guangdong, Sichuan, Hainan, Shandong, Liaoning, Inner Mongolia and Macau.

Baidu posts US$2b profit in Q3

Beijing, 16th November: Earlier this week, Baidu, the leading Chinese language Internet search provider, released its financial results for the quarter ended 30th September 2020. Revenues in the quarter were US$4.2 billion, a moderate increase of 1% year-on-year. The company posted a net profit of US$2.02 billion in the quarter, compared with a net loss of US$892 million in the same quarter of last year.

Revenues from Baidu’s core business were US$3.15 billion in the quarter, a 2% increase year-on-year. Of which, US$2.72 billion were generated from its online marketing business, while non-online marketing revenue amounted to US$434 million. Online marketing revenue was flat compared to last year, and non-online marketing revenue grew 14%, due to the growth of Baidu’s cloud services.

Share price movement in B2B media companies involved in Asia

Figure 1: BSG B2B Media Index vs. All Tracked B2B Stocks (price movement over past 12 months)

Figure 2: BSG B2B Media Index vs. All Tracked B2B Stocks (price movement since January 2020)

Quick takes

Informa looking financially stronger

The world’s largest commercial exhibition organiser, Informa Plc, is expected to be cashflow positive by January. Its share price jumped 27% on the news that Pfizer is making progress with its COVID-19 vaccine.

Singapore and Hong Kong to launch travel bubble

The two cities have agreed to ease travel restrictions beginning on 22nd November. There will be quite a few hurdles for travellers to jump through such as COVID-19 tests, downloading a tracking app and obtaining an “Air Travel Pass.” This should be viewed as a pilot programme as initially only 200 people will be permitted to travel each direction on any given day.

U.S.-based Emerald Holdings looks to 2021

Emerald Holdings, perhaps somewhat optimistically, is looking to the first quarter of 2021 to restart some of its events. The group’s third quarter revenues were down 89% with the cancellation of 29 exhibitions.

COVID-19 cases in Malaysia spike

In the last two weeks, Malaysia has recorded over 13,000 new confirmed cases. That represents a large spike. Since the beginning of the pandemic, the country has recorded less than 44,000. MACEOS advocating for events to be allowed to continue.

Sino Splendid’s revenues drop 59%

Hong Kong, 9th November: Earlier this week, Hong Kong-listed Sino Splendid (formerly China.com) announced its financial results for the nine months ended 30th September 2019. Revenues in the period were US$3.4 million, a 59% decrease compared with the same period in 2019. The company recorded a loss of US$1.5 million in the first nine months of 2020, compared with a loss of US$738,000 in the same period last year.

More than half of its total revenues were generated from Sino Splendid’s Travel Media Business, amounting to US$1.8 million. This represents a decrease of 70% compared to last year. The decrease was almost entirely due to the outbreak of COVID-19 and its impact on the travel industry.

The company also reported its financial results for the quarter ended 30th September. Revenues in the quarter dropped 59% year-on-year, down to US$897,000. The loss in the quarter was US$193,000, compared with the loss of US$102,000 in the third quarter of 2019.

Japan’s Uzabase sells Quartz

Japan, 9th November: Uzabase, a Japanese media company, announced plans to sell Quartz, U.S.-based online business news publisher, to its co-founder and editor-in-chief for an undisclosed amount.

Uzabase bought Quartz from Atlantic Media in 2018 in a deal valued at approximately US$110 million. Quartz’s operations were hard hit by the ongoing coronavirus pandemic. The company laid off about 80 employees earlier this year. According to media reports, Quartz had 188 staff at the end of last year.

Alibaba’s revenue up, profit down

Hangzhou, 5th November: Also last week, the Alibaba Group, released its financial results for the quarter ended 30th September 2020. The company recorded total revenues of US$22.8 billion, up 30% year-on-year. However, the group’s net income dropped 63% in the same quarter, down to US$3.9 billion.

Revenues from Alibaba’s B2B business in China, primarily generated through 1688.com, were US$536 million, an increase of 11% year-on-year. Revenues from its international B2B business, primarily operating through Alibaba.com, jumped 44%, reaching US$517 million.

The group also released its financial results for the six months ended 30tsh September, generating revenues of US$45.5 billion, an increase of 32% year-on-year. Net profit decreased 19% in the six-month period, down to US$10.7 billion. Diluted earnings per share in the first half of the financial year were RMB 27.83 (US$4.10).

Alibaba generates US$74 billion of GMV on Global Shopping Festival

Hangzhou, 12th November: The Alibaba Group, the largest e-commerce company in China, announced that the company generated US$74.1 billion of gross merchandise volume (GMV) during its 2020 11.11 Global Shopping Festival. The event is also known as “Singles Day.”

This year, the festival featured two shopping windows, the first running from 1st to 3rd and the second for 24 hours on 11th November. Total GMV was calculated from 1st to 11th November. The figure doubled last year’s record of US$38.4 billion.

Share price movement in B2B media companies involved in Asia

Figure 1: BSG B2B Media Index vs. All Tracked B2B Stocks (price movement over past 12 months)

Figure 2: BSG B2B Media Index vs. All Tracked B2B Stocks (price movement since January 2020)

Quick takes

Hannover Milano organises huge shows in Shanghai

It is encouraging to see Hannover Milano’s massive shows with over 190,000 m2 and more than 100,000 visitors onsite. It is, however, a bit premature (even in China) to call this the post-pandemic era!

Ant Group IPO delayed by Chinese regulators

Jack Ma has a legendary ability to navigate China’s minefield of politics and regulation.  See Alibaba’s uninterrupted rise from start-up to global e-commerce giant. It seems, however, that Jack finally made a misstep of sorts. Just hours before Ant Group’s record-setting IPO, Beijing held up its hand. Not a good look for both the company and Beijing.

UFI unveils its new board

Following the election earlier this year, UFI, the global association of the exhibition industry, has announced its new board of directors for 2020-2023. Asia is represented by a good cross-section of the industry in the region. 

Clarion announces a U.S.-based acquisition

This is a rare occurrence these days. Clarion has announced the acquisition of U.S.-based, Quartz Events which is an organiser of “invitation-only, executive summits.”

Informa Markets India to restart physical events in December

Mumbai, 27th October: Informa Markets, an international exhibition organiser, announced plans to host six physical B2B events in India in December. The events will be organised under the AllSecure standard which was created by Informa Markets to safeguard the health and safety of its stakeholders. AllSecure is also in line with the Indian government’s guidelines to ensure “a smooth, secured experience for exhibitors and visitors.”

The six events include: 8th Annual InnoPack F&B 2020 Confex (4th December in New Delhi), Fi India & Hi (8th to 10th December in New Delhi), ProPak India (8th to 10th December in New Delhi), Renewable Energy India Expo (10th to 12th December in Greater Noida), Delhi Jewellery & Gem Fair (12th to 14th December in New Delhi), and Hyderabad Jewellery Pearl & Gem Fair (18th to 20th December in Hyderabad).