EMAP’s Consumer Mags Group Reports 16% Rise In Profit

EMAP’s UK consumer magazines division, which publishes the men’s market-leader FHM, has reported a 16% increase in operating profit, up from £56.1 million in 1998 to £64.9 million this year. This compares to an increase in ‘normalised’ pre-tax profit for the EMAP Group of 14% to £161.6 million for the year ended 31 March 1999. Total revenue was also up 14% to £880.1 million.

Advertising revenues across EMAP’s consumer magazines increased by 10% during this period, although the rate of growth started to slow during the second half of the financial year. Nevertheless, EMAP says that fears of an advertising recession are unfounded. Circulations for the consumer mags fell by 1% in the second half, after a high in the first. Growth is predicted to be slower in 1999 than the previous year, although EMAP expects improvements in both advertising and circulation in the second half of 1999 as the economy picks up.

The company’s new high-profile weekly listings mag, Heat, is understood to be selling below its target circulation of 100,000 copies per issue, although no official audit figures are presently available. EMAP describes Heat, which launched in January (see First Issue Review – Heat), as residing in a “difficult copy sales environment.” Advertisers have apparently offered ‘encouraging support’ for the title.

EMAP Business Communications performed strongly last year with revenues up 12% to £219.9 million and profits up by 33% to £47.5 million. However, recruitment and display advertising weakened across most of the company’s business and professional publications.

National advertisers have contributed greatly to the growth in revenue for EMAP Radio, as with commercial radio in general (see Commercial Radio Revenue Growth Continues To Outperform Market). EMAP Radio’s profit was up by 18% to £26.8 million on revenue up 11% to £77.8 million. EMAP predicts that radio revenue will grow 8-10% during this year.

In December last year, EMAP acquired US publisher, Petersen, for £720 million (see EMAP Makes £720m US Move). Commenting on the new business, chairman Robin Miller, said: “Early signs from Petersen are encouraging, particularly in advertising, and new revenue streams are opening up for the Group.”

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