Emap Warns of Difficult Second Half

13 November 2001

Magazine and radio giant Emap posted a rise in profits and revenues for its fiscal first half, but warned that the conditions that had hampered it in the first six months showed no sign of disappearing in the second half.

The group reported a 3% rise in revenues to £456 million – in line with earlier, revised guidance [WAMN: 27-Sep-01] – and an 8% jump in “normalised” pre-tax profits to £55m (“normalised” meaning exclusion of its ailing US unit, which it sold at a loss of £498m earlier this year).

“Trading for the third quarter continues to be mixed,” the group declared. “Although the board expects the second half of the year to be at least as difficult as the first, current trading remains in line with expectations and the board remains confident of achieving its full year objectives.”

Emap Consumer Media, publisher of magazines such as FHM and Heat, performed best, with revenue rising 5% and underlying profit 9%.

However, its Emap Communications trade publishing and exhibitions unit did not do so well, as a decline in display advertising pushed profits down 4%. Similarly, the Emap Performance radio division – whose stations include Magic and Kiss FM – posted a 7% drop in ad income, sending revenues down 2% and profits 12%.

News source: MediaGuardian.co.uk