Emap Profits Jump 9%, Aided By Strong Consumer Mags
Cross-media group Emap this morning released a confident set of first half financial results, reporting pre-tax profits up by 9% to £94 million on turnover up by 7% to £509 million.
Emap Consumer Emap Consumer, home to the majority of the group’s consumer magazine titles, saw operating profits rise by 4%, despite a £3 million investment in new title Closer. Revenues from Closer, which is ahead of business plans, more than offset the loss of revenue from certain titles sold to French publishing group Lagardere in October 2002.
The success of celebrity title Heat continues apace and there were also strong circulation performances from Closer, Empire and Max Power.
Emap Performance Emap Performance houses the company’s analogue and digital radio stations, music magazines and digital TV music channels. Operating profits at Performance were flat, with good growth in radio being partially offset by softer revenue across magazines, music events and television.
Digital radio, new magazine Sneak (which launched in April 2002) and The Hits music TV channel on Freeview, all helped to boost total revenue growth to 8%.
Emap Communications Emap Communications comprises the large majority of the group’s business-to-business (B2B) publishing, exhibitions and information activities. Operating profits were flat, whilst turnover rose by 8%. The company says that B2B display advertising has shown some recovery after two years of declines.
Outlook and current trading In the UK, Emap says that consumer magazine advertising remains ‘reasonable’, but forward bookings continue to run marginally behind last year.
B2B recruitment advertising remains volatile with little sign of any improvement as yet, while the improving trend in B2B display advertising in the first half has continued into the third quarter.
Radio advertising continues to be reasonable, with local advertising in particular strong across October and November. Television airtime revenue remains depressed with no change to recent trends.
Although the Board expects to see no material change in trading conditions for the remainder of the second half, it remains confident of achieving its full year goals.
| EMAP’s Current Trading Assessment | |
| Consumer circulation | Good |
| Consumer advertising | Reasonable |
| Radio advertising | Reasonable |
| Television | Weak |
| B2B exhibitions | Strong |
| B2B display advertising | Good |
| B2B recruitment advertising | Soft |
| US advertising | Reasonable |
Shares in Emap were up by 1.4% at 811p by late morning, following the release of the results.
