After difficult trading conditions in 2003, consumer magazine publisher Highbury House Communications today announced that it expects pre-tax profits for the first six months of 2004 to be up 27% year-on-year, spurred on by expected improvements in advertising revenue.
Although a marked improvement on last year, which saw profits dive by £25.7 million (see
Highbury House Loss Hits £25.7 Million), the group said in a pre-closing trading update that suffering newsstand sales in several sectors especially, video games, home entertainment and leisure had dogged profit margins.
The statement added that historically Highbury House has reported 60% of profits in the second half of the year and this year especially has become more weighted towards July to December. By then it is expected that investment in acquisitions will start to pay off and recent video games launches will help increase demand for computer magazines.
In August 2003, Highbury House acquired video game magazine publisher, Paragon Publisher for £32 million (see Shareholders Approve Highbury’s £32m Paragon Acquisition).
The interim results for the six months to 30 June are due to be announced on 23 September 2003.
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