EMAP Results – Reaction

The Times notes that investors were wary of EMAP’s big US acquisition – which has since been disposed of (see Petersen Sale Closes ‘Difficult And Unhappy Chapter’ In EMAP’s History) – from the start, adding further pressure to stock already strained by heavy investment in new media, after what turned out to be an exaggerated optimism surrounding the boom of the ‘new economy’.

The paper notes that EMAP’s shares have underperformed the media sector by around 40% over the last three years, although the speed with which EMAP ditched the US business and saw its chief executive depart has restored some faith from investors, it says.

There are some encouraging signs in the results (the success of Heat and the fact the 55% of EMAP’s income is non-advertising-related), but it remains vulnerable to advertising weaknesses and there is little sign of an upturn, says the Times.

The Independent was impressed merely that the results contained ‘no new horrors’ – an achievement for a media company at present, it says. It draws attention to the £127 million loss resulting from the failed US venture, which has pushed the company £100 million into the red.

The Independent is reassured that EMAP seems to have learnt its lesson over the US business and is now looking for small, bolt-on deals in the future.

The Times: No better than Hold Daily Telegraph: Cautious Buy Independent: High enough for now

ABN Amro: Add Credit Lyonnais: Add