Strong consumer magazine sales at Emap have helped offset weaker trading in the radio market in the last six months, the group reported in a trading statement this morning. This is in line with earlier indications reported on MediaTelINSIGHT.
Total revenues at Emap will rise by 5% in the six months to 30 September (2% on an underlying basis).
Consumer magazines This growth has been driven largely by the strength of the consumer magazines division, which has seen circulation revenues rise by 7%, with particular success at celebrity title Heat.
Advertising revenues at consumer titles have increased by 2% across the period, at a time when most media groups are struggling with declining advertising spend.
Radio The radio division is weaker, with airtime sales down by 7% – an underperformance of the market, which has been broadly flat.The national sector has been poor, whilst local sales are much firmer.
Digital music television channels Emap says that its six digital music channels have seen ‘exceptional growth’ in H1 of the financial year, with revenues up nearly 200% year-on-year.This is due to their market-leading share of music TV viewing being converted into revenue, says the statement.
Business-to-business Underlying business-to-business (B2B) recruitment advertising revenue fell by 3% over the period, with significant week to week volatility in most of the sectors covered by Emap.
B2B display advertising was down 8%, with no real improvement across the group’s core markets after a difficult year in 2001.
Outlook Emap is taking a cautious view of the wider advertising market, particularly in the light of what it describes as the uncertain political and economic environment across its two core territories – the UK and France.
Consumer magazines are expected to continue to perform well over the next couple of months, both in terms of advertising revenues and copy sales. The division has just launched a new title, Closer, into the women’s weekly market and is spending around £10 million this year promoting it; a further £5 million is earmarked for the next financial year.
Visibility in the UK radio market remains very short term and at this stage there are few signs of any material change in national airtime sales, although local revenues continue to improve, the group says.
Against this, the music television channels are going from strength to strength with similar growth to that reported up to the interim stage
The weekly nature of B2B recruitment advertising means that this remains uncertain with little evidence of any clear trends emerging, while B2B display advertising remains tough.
Subscribers to MediaTel Insight can access this report in full, along with more national and international media analysis, forecasts and news. For subscription details please visit the site.
