Primedia Posts Widening Q2 Loss

27 July 2001

US publisher Primedia – which recently purchased the American unit of British counterpart Emap [WAMN: 02-Jul-01] – yesterday posted a wider Q2 loss than expected.

Hit by charges, acquisition payments and the ad downturn, its second-quarter loss including items stood at $139.7 million, far wider than the $7.1m in Q2 2000. Excluding items, the loss stood at 49 cents per share, wider than analysts’ forecasts of 30 cents.

Q2 revenue jumped 4.7% year-on-year to $445.3m, while EBITDA (earnings before interest, taxes, depreciation and amortization) fell from $72.2m twelve months ago to $49.6m.

“We are very pleased with our revenue growth in this difficult environment,” said chairman/ceo Tom Rogers. “While we saw year-over-year revenue gains at 16 B2B publications, our overall B2B segment was hit by the well-publicized trade advertising malaise, particularly affecting the communications, entertainment, transportation and marketing sectors.”

The company estimates that the purchase of Emap USA will add $6m–$8m in EBITDA in Q4, and $62m over the course of next year.

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