Multimedia group, Emap, has said it is ‘on track’ for the financial year as it today posted a 7% increase in total group profits for the first six months of this year.
This morning’s results for the period ending 30 September 2004, which were in line with analysts expectations show that as group profits climbed to £110 million, pre-tax profit rose by 2% to £96 million, while turnover was up 3% to £522 million.
During the last six months, Emap’s consumer magazine advertising revenue grew by 3%, as Heat, Closer and Zoo all performed strongly during the period. However, the group’s revenue looks weak when compared to the market average which is expected to grow by 6%, according to the latest forecasts from the Advertising Association.
The consumer media division, which publishes magazines in the UK, Australia, the USA and South Africa, saw a strong performance during the last six months, as total revenue climbed by 6%, with losses from the closure of J17 and The Face offset by the new launch of Zoo. Operating profit in this division climbed by 17%, as the investment from Zoo turned into profit.
In Australia, Emap’s revenues seemed to be outstripping the UK, growing by 11% during the period, however the group said this was mostly due to a cover price increase. Overall, total reported revenue for Emap’s consumer media international business was £25 million, this includes revenues generated from the launch of 27 new editions of FHM published around the world.
Turnover at the business to business magazines section, Emap communications, grew by 10% with good organic growth across the business, while turnover was up by 9% and operating profit experienced a strong period, growing by 25%.
Emap said its radio performance was ‘reasonable’ despite total revenues leveling at £47 million and profits falling by 25% to £9 million, reflecting investments in Kerrang 105.2 and digital multiplex, while radio margins also reduced from 26% to 19%.
Chief executive, Tom Moloney said: “We continue to make good progress across our portfolio and in many parts of the business we have grown our revenues, increased market share and improved our profitability, against a trading backdrop that continues to be competitively intense, especially in France.
“We have also delivered several new launches and acquisitions, which will make a growing contribution in future years. We are on track for the current financial year and we look forward to delivering good growth into the future.”
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