EMAP Shows Good Results In Improving Markets
EMAP has this morning posted a strong set of first half financial results, which show pre-tax profit before exceptional items up by 23% to £86 million during the six months to 30 September 2002; operating profit rose by 23% to £95 million.
Consumer magazine advertising is ‘buoyant’ and ‘reasonable’, whilst business to business (B2B) ad conditions remain poor, said EMAP. In the radio market, revenues are flat, whilst television airtime trading is described as exceptional.
| Current Trading Conditions At EMAP | |
| UK consumer circulation | Good |
| UK consumer advertising | Reasonable |
| UK B2B exhibitions | Good |
| UK B2B display advertising | Poor |
| UK B2B recruitment advertising | Mixed |
| UK radio airtime | Flat |
| UK TV airtime | Exceptional |
| France newsstand | Mixed |
| France advertising | Improving |
| France subscriptions | Growing |
| Source: EMAP, November 2002 | |
Commenting on the results Robin Miller, EMAP group chief executive, said: “We are pleased to be delivering an improved set of results in a difficult market. We’ve made considerable progress in the last 18 months in restoring stability, regaining confidence and positioning EMAP for a successful future.”
EMAP Consumer Media The Consumer Media division accounts for around 35% of EMAP’s revenues and saw its revenue rise by 6.5%. Circulation revenue was up by 9.0% and advertising revenues rose by 5.0%. These figures discount the effect of launches, closes, acquisitions and disposals and an extra edition of FHM which was published in H1 2001.
Heat magazine continues to be the consumer division’s biggest success story, with some recent issues selling over 600,000 copies per week.
EMAP’s joint publishing venture with French media group Hachette Filipacchi was dissolved on 15 October, following the acquisition of Attic Futura – a UK rival to EMAP – by Hachette (see Emap Sells Stake In Red Magazine).
EMAP Performance Figures at the Performance division have been dragged down by the weak advertising conditions in the radio sector, in which EMAP reported a 7.0% decline in H1. Current trading suggests that H2 will be more or less flat, says EMAP.
Recent figures from the Radio Advertising Bureau (RAB) indicate that the radio market as a whole saw revenue rise by 3.2% in Q3 (see Forecasts). Merrill Lynch forecasts that Q4 will be flat (see Forecasts). This implies that EMAP is still slightly underperforming the market.
EMAP France Revenues at the company’s French businesses declined by 1.0%, whilst operating profits declined by 3.0% on an underlying basis. Advertising was down 8.0% underlying in Q2, as against a 5.0% growth in Q1.
Shares in EMAP were up 1.5p at 754p by mid-morning today.
