Market bleak but sales to strengthen: IABM index

Global broadcast technology sales decrease year-on-year by 4.4%.
Director of IABM, IABM index December 2009; Peter White, News, Broadcast Business

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The latest quarterly Industry Index published by the International Association of Broadcast Manufacturers (IABM) indicates that global sales of broadcast and media technology suppliers have decreased year-on-year by 4.4% compared to an increase of 10.6% a year ago.

While 57% of the companies in the Index are still reporting that they remain profitable, the aggregate market profitability has declined globally by 11% year on year, according to the IABM. Furthermore, of those companies in the Index that are now reporting losses, 53% have moved from profit to loss in the last twelve months.

Peter White, director general of the IABM stated that it is now “seeing the full impact of the global economic downturn reflected in our quarterly Industry Index”.

“We have witnessed a sharp and sustained decline in sales and profitability figures in 2009 and the year-on-year change has been made all the more stark when compared to the excellent Olympic year of 2008. We are, however, now beginning to see an improvement in sales activity but it could be some time before any recovery is reflected in deliveries.”
Uncertainty and caution in the short term is a common theme, according to the organisation.

Reports filed by members indicate that budget cuts, delayed capital expenditure and cancellation of potential upgrades have caused alarm in the industry. As a result, many have turned to re-structuring and focusing on a more efficient service-oriented image to maintain profitability.

Despite these challenges the index shows that the operating profit-to-sales percentage remains at a commendable 10.5% for the market globally.

“Drilling down further it can be seen that the larger companies are returning on average 12% while smaller and medium sized companies have a negative rate of -5%,” the IABM statement added.
 

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