Emap’s outgoing chairman, Adam Broadbent, will tell shareholders at today’s AGM that advertising revenues are likely to be down as the market shows signs of softening.
Broadbent will say: “Trading in the first two months of the financial year was in line with our expectations, but the trends that are now emerging make us more cautious about the prospects for underlying revenue, which may be marginally down in the first half.”
Shares in the company fell by 12.5% after the potential fall in revenues was revealed.
Broadbent will go on to note: “We had a good start to the year in UK consumer magazine advertising but current booking levels indicate a softening of the market.
“In radio advertising, we have also seen a good start to the year followed by a weakening outlook.” However, Emap expects to outperform the UK radio market due to its strong local brands and national reach.
Broadbent will also make clear at the AGM that Emap will continue to invest in acquisitions, primarily in B2B, with that sector currently performing well, although public sector recruitment in that field has declined more rapidly than was anticipated.
In addition, the company will reveal plans to increase investment in new product development in continuing businesses to £25 million, which will include funding for more digital innovation.
Broadbent steps down from the position of chairman at the end of today’s AGM, with Alun Cathcart, currently deputy chairman, taking over the role.
In June, the company agreed to sell off Emap France to the Italian media group Mondadori for approximately £380 million. Emap expects the sale to be completed in the first half of this financial year, after which it will return £285 million of the sale proceeds to shareholders (see Sale Of Emap France Agreed).
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