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EMAP Boosts Consumer Magazine Portfolio With Acquisition Of Wagadon

EMAP this morning announced the acquisition of Wagadon, specialist publisher of men’s and fashion magazines, for an undisclosed sum. The merger of the two publishing operations boosts EMAP’s portfolio of titles, with Wagadon’s Arena, The Face and Frank particularly complementing EMAP Metro’s stable of titles, which includes best-selling men’s lifestyle mag, FHM.
The sale of Wagadon has been on the cards since May when founder Nick Logan took over full control of the company by buying the 40% stake held by GQ publisher Condé Nast (see Wagadon Reclaims Control Amid Sell-Off Rumours). Logan already held the remaining 60% stake in Wagadon. However, at the time Wagadon denied the rumours that it was up for grabs.
Commenting on today’s sale, Logan said: “Wagadon has reached the stage in its development where the level of support and resources we can provide is not sufficient for the magazines to reach their full potential.”
In 1998 the Wagadon titles produced revenues of £10.4 million and the total annualised circulation across the group’s magazines is currently 1.7 million. The average combined circulation per month, for July-December 1998, was just under 170,000 (see table below). EMAP says it expects to improve both revenues and profits across the titles within the next twelve months. Cross-selling of advertisers between EMAP and Wagadon titles is anticipated and EMAP is also to invest in online publishing opportunities for the Wagadon magazines.
A ‘significant’ investment in Wagadon’s titles by EMAP comes as circulations are in decline. In May, women’s title Frank was pulled back from monthly to quarterly publication. Both Arena and The Face reported declines in circulation in the latest ABC audit.
Wagadon Titles ABC Period On Period Comparisons Jul-Dec’98 | ||||
Title | Jan 98 – Jun 98 | Jul 98 – Dec 98 | Actual Change | % Ch |
Arena | 65,010 | 60,949 | -4,061 | -6.2 |
Face | 78,173 | 71,381 | -6,792 | -8.7 |
Frank | 41,548 | 37,233 | -4,315 | -10.4 |
Total | 184,731 | 169,563 | -15,168 | -8.2 |
One of the reasons EMAP is keen on the Wagadon titles is that a third of their circulation comes from overseas sales. This strengthens EMAP’s overseas presence at a time when it is ‘internationalising’ its operations.
Commenting on the deal, EMAP’s chief executive Kevin Hand, says: “The acquisition of the Wagadon titles strengthens our position in the men’s and fashion publishing markets and complements our current magazines. It is also an excellent acquisition for several other reasons: the titles are internationally recognised magazines; we will offer a wider package of men’s and fashion titles to advertisers; we will introduce electronic publishing to titles which are well-established brands and the return on our investment should be rapid.”
“We believe this is a good time to be buying titles such as these. Advertising in UK men’s lifestyle and fashion magazines is strong and the prospects in this are are looking good,” adds Hand.
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EMAP: 01733 568 900 Wagadon: 0171 689 9999