UK magazine publisher Highbury House Communications (HHC) today said that the costs of its acquisition and restructuring programme, together with continued weak business publishing markets, are likely to push down profits for the whole of 2003.
Announcing first half financial results, the group said that the second half of the year should see a good performance from the consumer publishing division, but the business sector will remain difficult. Looking ahead to 2004, the prospects are ‘very favourable’, it says.
Pre-tax loss for H1 2003 was £27.8 million, down from a profit of £2.9 million in H1 2002. Consumer profits rose by 7%, boosted by a three month contribution from Cabal Communications, whilst business publishing revenues fell by 19%.
Consumer advertising revenues rose by 2%, whilst business ad revenues dropped 19%. Overall group revenues, excluding the contribution from Cabal, were down by 9%, with circulation up 1% and advertising down 9%.
HHC has been moving away from its previous position as a business publisher to concentrate purely on its consumer interests. In July this year it agreed to buy video games and computer magazine group, Paragon Publishing, for £32 million.
Commenting on today’s results, executive chairman Ian Fletcher said: “Satisfactory results from our consumer operations support our operation strategy of concentrating on [consumer titles] and disposing of our business publishing which, having experienced very difficult trading conditions, has now been successfully restructured.”
“In the second half of the year, when we make most of our profits, we expect consumer activities to continue to perform well and although we will benefit from the cost savings in business publishing, this will be offset by continuing difficult market conditions and the disruption caused by the reorganisation. Nevertheless, our prospects for 2004 remain very favourable,’ he said.
Subscribers to MediaTel Insight can access more national and international media analysis, forecasts and news by visiting the site.
