Sydney announces bigger expansion plans

News this week: The New South Wales (NSW) Government has announced through project manager, Infrastructure NSW (INSW), that a budget of US$1.03 billion has been approved to fund the development of the Sydney International Convention, Exhibition and Entertainment Precinct (SICEEP) at Darling Harbour.

The latest update on new facilities will include 40,000 m² of exhibition space and 6,000 m² of meeting room space, while convention and banqueting capacity will be increased to cater to 10,000 and 2,000 people respectively.

The total size of the precinct will also be increased by two-thirds from 12 to 20 hectares, which will include supporting facilities such as hotels and retail space. The construction of the precinct will see the Sydney Convention and Exhibition Centre and Sydney Entertainment Centre closed for renovations between 2013 and 2016.

Industry players have voiced concerns regarding replacement space for the “65 large exhibitions and events that will be displaced over the three years”, as well as the allocation of open public space due to the inclusion of the adjoining Tumbalong Park in the expansion.

Barry O’Farrell, Premier of NSW, commented, “NSW has already lost A$150 million in economic benefit over the four years to 2010-11 because the current facilities have not been able to accommodate 169 conventions and 12 exhibitions. During the three-year construction period, Sydney’s major events industry will remain open for business… Sydney Olympic Park, Moore Park, Sydney’s hotels, the Australian Technology Park, Allphones Arena and other venues in Sydney will play an expanded role in hosting conferences, exhibitions and entertainment during the construction period.”

 

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Global Sources lowers first half guidance

News this week: This week, NASDAQ-listed B2B media company Global Sources released an update on its first half revenue forecast.

Revenue forecast has been revised down from the previous range of US$108 million to US$110 million to the range of US$104 million to US$106 million. Company management also expects EPS to drop from the range of US$0.36 to US$0.38, to the range of US$0.31 to US$0.34.

Merle A. Hinrichs, executive chairman of Global Sources, commented, “Our customers have become increasingly conservative with their marketing budgets and as such we are now revising our revenue and net income expectations for the first half of 2012. It has become clear that exporters are reacting to the slowdown in exports and the uncertainty in the global economy. In addition to the soft demand from the United States and the European Union, we have also been affected by the political situation in the Middle East, where we now expect significantly less exhibitors for our May shows in Dubai. As such, we anticipate less than expected revenue for the first half of 2012.”

 

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

CFO revenues drop, records loss

News this week: NASDAQ-listed China Finance Online (CFO), a Chinese online financial information provider, has released both its 2011’s full year and fourth quarter results. For the year ended 31^st December, CFO recorded revenues of US$53 million, a decrease of 11% from US$59.7 million recorded in 2010. Net loss attributable to shareholders in 2011 was US$19 million, compared to a profit of US$2 million in the previous year.

For the quarter ended 31^st December, revenues were US$11 million, a year-on-year 27% decrease compared to US$15 million in the fourth quarter of 2010. Net loss attributable to shareholders in the quarter was US$15 million, while to a profit of US$89,000 recorded in the same period of 2010.

Revenues were generated from subscription fees from individual customers, subscription fees from institutional customers, advertising revenues and revenues from brokerage-related services. According to the company, in the fourth quarter, revenues from subscription fees from individual customers decreased 39% year-on-year, reflecting on the decreased in demand for financial information products in China. The company had approximately 94,000 active paid subscribers at the end of 2011.

In the result announcement, CFO also announced the implement of a strategic transition of its core business from providing premium subscription services to individual investors, to developing fee-based securities investment advisory services with wealth management services.

 

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.