Ahead of the release of Emap’s Annual Statement next week, broker Merrill Lynch, has said that it expects pre tax profit at the magazine publisher to be up 12% to £196 million for 2003/2004.
Merrill Lynch says, that although underlying momentum in the UK consumer portfolio is slowing, the recent launch of magazine,
Closer is helping to offset a more sluggish performance elsewhere. France continues to be a cause for concern where a new launch from Prisma is pressuring Emaps’s stable of TV listing titles, which accounts for 35% of French revenue.
B2B made a recovery in the second half of the year to return positive growth, helping to offset the weaker French market.
Looking ahead to 2005, Merrill Lynch forecasts remain unchanged with pre tax profits at Emap expected to grow by 9% to £214 million.
Radio revenues for next year look set to perform well, with a rise of 5%, but things in France look a bit more challenging as competition hots up, another volatile year is expected, says Merrill Lynch.
The Merrill Lynch report concludes by saying that Emap’s strong balance sheet suggests scope for further bolt-on deals in B2B and in the French magazine market.
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