Emap hit by French weakness

Magazines and radio group Emap saw its share price tumble 9% today after it said that trading conditions had worsened at its French arm.

The group, whose titles include FHM, Heat and Empire, said increased competition in France and the weakening of the euro had affected the division.

Emap said, however, that the overall business was “in good shape” after a good performance from titles in its UK portfolio.

Pre-tax profits for the year to March 31 rose 3% to £144m (€215m) while turnover increased 9% to £1.1bn (€1.6bn).

In France, television listing titles Tele Star and Tele Poche showed steeper circulation declines since the start of the new financial year.

These weaknesses were starting to have an impact on advertising revenues and forward bookings were behind compared with the same period last year, it added.

Increased competition and the weakening of the euro were also affecting the profitability of Emap France to a greater extent than expected two months ago when the group issued a trading statement.

However, the company said it expected a continued strong performance from the UK, which it said would allow it to deliver reasonable progress in the current financial year.

Chief executive Tom Moloney said: “The business is in overall good shape. Whilst we face some major challenges in the year ahead, we’re ready for them, and we expect to continue delivering growth.”