Emap is forecasting a 3% increase in revenues when first-half results are issued in November but claims that it is premature to suggest that market conditions are improving.
In a trading statement today, the cross-media group said that there had been revenue growth across all four of its divisions with Emap Consumer Media making the most headway, up 6%.
In the UK, underlying consumer magazine circulation revenues grew by 4% in the six months to September 30 while advertising was up 5% as a result of positive performances from the likes of Heat and Max Power.
The business publishing sector has been hardest hit by the advertising recession but Emap says that B2B display advertising has grown 3% of late and total revenues at Emap Communications are estimated to have risen by 4%.
Airtime revenues in the radio division increased 9% in the first half of the year, with the strongest gains coming in the opening quarter. Particular mention goes to Kiss and Magic which have both seen their share of the London audience grow. However, Emap’s fledgling music TV stations are going through a difficult period with revenues down by 10%. As a result, growth at Emap Performance division was steady at just 2%.
Market conditions across the Channel remain tough and turnover at Emap France is up by only 1%. In the US, circulation revenues at FHM have slipped 9%, but this is overshadowed by a 35% jump in advertising revenue.
Trading conditions and outlook
Emap maintains that it is making good progress towards its full year goals but this is no cause for complacency.
“Although there has been a degree of short term optimism in the wider UK market, Emap, like many of its peers, believes that it is much too early to say that this will lead to any major change in current market conditions,” read today’s statement.
The group said that the overall trading environment was slightly tougher towards the end of the first half and current year investment in new product development will be nearer to £19m rather than the £23m previously advised.
The consumer magazine portfolio continues to perform admirably, although the lead-time on forward advertising bookings has marginally shortened. Meanwhile, B2B display advertising is showing solid year on year growth while recruitment advertising remains volatile. The radio revival shows no sign of abating and forward bookings are good for October and November.
Emap releases its interim half-year results on 11 November 2003.
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