Cannes Lions owner Ascential moots exhibitions sell-off

Ascential, the business that used to be known as Emap, has put its exhibitions arm up for sale to focus on digital.

Shares in the events-to-publishing firm, formerly owned by private equity until a float two years ago, bounced more than 4% on the news.

Results for 2017 show a surge from a loss of £1.8 million to a profit of £33.1 million.

That enabled it to increase the divi for the year by 19% to 5.6p. The shares rose 16p to 394p, at which price the company is worth £1.6 billion.

Last year Ascential sold 11 of its trade journals. Today it announced a “strategic review” of the exhibitions arm, which hosts Pure, Glee and BVE among others. City analysts estimate it could raise as much as £300 million, perhaps from a private-equity buyer.

Ascential will now focus on helping companies, mostly consumer brands, expand their digital offering.

Chief executive Duncan Painter said the business is generating “significant” cashflows which can pay for deals, investment and shareholder handouts.

Cannes Lions, the Oscars for the ad industry, saw revenue up 7%. Ascential says it plans to make this event “more affordable and accessible”.

Painter hinted that pruning of brands, beyond exhibitions, is likely.