Emap Boosts Magazine Launch Budget

Following a trading statement last week outlining plans to further cut its internet operations (see Emap Receives US Approaches, Cuts Digital Spend And Sees Year-End In Line With Expectations), Emap has now given details of a boost to its launch budget. The media group is to increase its new launch spend from £17 million to £22 million for the 2001/2 financial year.

Emap has knocked back internet investment from a planned £250 million spend in three years to just £120 million; it has also reduced its online operations at a write-off of £10 million. Instead, it now intends to concentrate more on its traditional magazine businesses, which is where the £22 million launch money will be directed.

According to ABN Amro, projects currently under consideration include the launch of Q and Arena to the US market and MaxPower and a women’s/celebrity title in France. For the UK, a new men’s weekly, a women’s/home interest title, a new music weekly and around 30 new conferences and exhibitions are being considered.

ABN Amro has reduced its profit before tax prediction for the coming year by 2.8% to £173 million, following the revised launch budget.

Separately today, American Media Inc, publisher of US supermarket tabloids the National Enquirer and Star, has been mooted as a potential suitor for troubled US division, Emap USA. American Media is thought to be putting together a bid of around £450 million; Emap paid £720 million just three years ago.

By mid-afternoon today stock in Emap was down 12p at 711p.

Emap: 020 7295 5000