EMAP Says Consumer Mags Revenue Stable, Radio Remains Weak

In a trading statement for the year to 31 March 2002, the company this morning said that forward advertising bookings are showing some improvement on Q4 2001 – in April and May specifically. It also indicated that its full year pre-tax profits would be ‘marginally’ ahead of market expectations.

EMAP saw total revenues rise 1% during the period, which contained a marked slow-down in growth in Q4. The company says that its “broad revenue mix continues to provide resilience.”

Consumer magazines Underlying consumer magazine advertising revenues were up 4% in the full year (first half up 6%). They are generally holding up well but reflecting some weakness in high-end fashion advertising, says the statement.

In the UK, underlying circulation revenues from consumer magazines were up 7% in the full year (first half up 10%). Circulation growth in the last quarter was much slower, with a few notable exceptions – Heat, Red, New Woman, Max Power and Kerrang!.

Radio Radio revenues were down 11% in the full year (first half down 7%), in what EMAP described as an increasingly tough market. Against this, revenues from the EMAP’s six digital music television channels continue to grow on the back of increased carriage, rising audiences and improved advertising sales, the company said.

B2B advertising Underlying B2B recruitment advertising grew by 2% in the full year (first half up 8%). B2B display advertising was down 9% in the full year (first half down 12%) with a gradual improvement across the second half as year-on-year comparables become easier.

French businesses In France, on an underlying basis, consumer circulation revenues were flat in the full year (first half down 1%). Subscription revenues were up 3% (first half up 4%).

Consumer advertising increased by 5% (first half up 7%), having held up well but levelling off towards the end of the year.

Outlook “Consumer magazine advertising in both the UK and France is broadly in line with plan. The radio market remains tough and there are few signs of any material improvement in national revenues, although local airtime sales are much firmer.

“Across the Group’s B2B operations, the key recruitment markets remain uncertain while trade display advertising is improving. Forward bookings on the key exhibitions are also encouraging.

“EMAP continues to take a cautious view of the advertising marketplace and is planning for a modest increase in underlying revenues for the new fiscal year.”

By mid-morning shares in EMAP were down 5p at 836½p.