The deceleration of growth in global advertising will lead to “marginally” lower earnings in the first half of 2001, warned publishing and radio giant Emap yesterday.
The decline was attributed by chairman Adam Broadbent to two main factors: plummeting adspend by telecoms and technology advertisers; and the sharp downturn experienced by Emap USA – currently in process of being to sold to America’s Primedia at a knockdown price of £366 million [WAMN: 2-Jul-01]. The adverse effect of the latter will continue until October when the sale is due to be completed.
However, the group has bullish performance expectations of its UK consumer magazines division where circulation revenues are up and titles such as lad-mag FHM and The Face are “showing some growth”
Following the statement Emap stock closed down 6p to £7.18p, against their twelve-month high last September of £12.21.
News source: Financial Times