Emap Results ‘In Line With Expectations’ But No Second Half Recovery Expected
Emap today released interim results which, although in line with expectations, demonstrated the extent to which the group had been hit by the advertising slump and forecast no second half recovery.
In a difficult year, one which has seen the resignation of Emap’s chief executive Kevin Hand on the release of their year end results in May (see EMAP Chief Resigns As Results Come In Line With Expectations) and the reintegration of the group’s costly digital operations in September (see Emap Sees Circulation Revenues Rise In Tough Marketplace), Emap has maintained revenue and circulation increases.
Emap Consumer Media, comprising the Elan, Automotive and Active networks, as well as FHM (retained by Emap in the US with the sale of Petersen) had a good first half with underlying, like for like revenues up 5% and underlying operating profit up 9%. Across the division circulation revenues grew by 12% for the period and advertising was up 5% year on year.
heat, an Emap Elan title, continues to grow readers and FHM continues to dominate the young menÂ’s market in the UK. In the six months to June 2001 FHM was also the fastest growing magazine in the US and is now on sale in Russia, bringing the total number of territories in which FHM is published to 15.
Robin Miller, chief executive at Emap said “A lot has been achieved in the last six months with the Company beginning to regain some of the momentum it has lost in recent times. There is more to do. We have weathered a tough trading environment in the first half reasonably well, with solid market share gains achieved in all our key markets. With a broad revenue mix, strong cash flows and robust underlying profits, we expect this resilience to stand us in good stead over the remainder of what we expect to be a difficult year.”
Shares in Emap had risen from an opening price of 727½p to 735p by 12pm, following a mid-morning peak of 743p.
