UK consumer advertising is trading well, whilst radio advertising conditions remain tough, according to year-end financial results released by EMAP this morning. The results are pretty much in line with the outlook given in the group’s trading statement in March.
Pre-tax profit rose by 6% to £151 million for the twelve months ended 31 March 2002. Turnover was down by 11% to £1.0 billion, mainly due to the disposal of US operations; discounting this disposal EMAP’s turnover rose by 3% to £938 million.
EMAP Consumer Media The consumer media division showed a ‘resilient’ advertising performance and pre-digital turnover rose by 4%, according to the results.
Advertising grew by 2% against a largely flat overall market; circulations were up 6%, helping EMAP to increase its share of retail sales value, as measure by the Audit Bureau of Circulations (ABC), from 17.0% to 18.1%.
EMAP Communications The business to business (B2B) division of EMAP saw a fairly stable underlying performance, although turnover fell 8% and profit 11%. This is mainly due to the sale of the EMAP’s B2B company in Germany last year.
EMAP Performance The group’s music and radio division suffered from weak radio advertising conditions. Revenues fell by 5% to £139.0 million and operating profit dropped by 11% to £41.0 million.
Radio advertising revenues were down 11% for the year. GWR Group, which released its year-end financial results yesterday, saw ad revenues decline by 7.2% over the same period. This compares to radio industry declines of 14% for national advertising and 2% for local, an 8% decline overall for the year to March 2002.
Outlook There are signs that in Q1 of the new fiscal year market conditions for certain of the Group’s businesses are improving, the company said this morning.
In the UK, consumer magazine advertising is showing good underlying growth in the first two months of the year and although circulation performance is mixed, copy sales from the key titles remain strong.
EMAP says there is little evidence of any real recovery in radio advertising and airtime revenues are expected to show negative growth in Q1 of the new fiscal year. TV revenues, as yet a small part of the total business, continue to grow significantly.
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