Emap Receives US Approaches, Cuts Digital Spend And Sees Year-End In Line With Expectations

Emap says that its year-end financial results – to be released on 29 May – will be in line with market expectations and that it has received a number of approaches regarding its US business, Emap USA. The statement comes at a time when many media-related companies are issuing profits warnings and tightening belts ahead of an advertising and US economy slowdown.

Emap says that in the UK its music-based Performance Network and core business-to-business unit, Emap Communications, have both continued to deliver strong underlying revenue and profit growth. It says that radio airtime sales have continued to grow at a rate in excess of the industry as a whole and that business recruitment revenues remain buoyant.

Consumer magazine circulation revenues have been solid with overall copy sales out-performing the market in the second half of the year and advertising revenue has improved after a disappointing first half and is now in line with the market as a whole.

Emap’s US consumer mag operations have struggled with poor ad revenues since their creation at the beginning of 1999. The group is considering a sale of the business and confirmed today that it has received a number of approaches in this regard, adding that it is still ‘considering all of its options’.

In November last year Emap announced severe cuts to its internet investment, from a planned £250 million in three years to no more than £120 million (see Emap Announces Cuts To New Media Investment Plans). After a continuous review of digital spend, it has decided to cut back its digital operations with an estimated cost of around £10 million.

Summarising its outlook, Emap today said: “Emap’s board believes that the company will start the new financial year in a stronger and more stable condition than twelve months ago and that it will make progress in the coming year.”

The market reacted positively to Emap’s decision to cut digital spend at a time when the internet sector is retracting. Stock was up 14 at 744p this morning.

Emap: 01733 568 900