Emap keeps full-year target in sight

Publisher Emap today said strong performances by UK magazines such as Closer, Heat and Zoo had kept it on course to meet expectations for the year.

The company said underlying group revenues in the six months to September 30 were expected to be 1% higher than last year, helped by a 3% rise in like-for-like sales at its UK consumer magazines.

That was despite a weaker UK performance from Smash Hits and Emap’s automotive titles such as Max Power. Revenues have also been lower in France.

In a trading update ahead of its interim results scheduled for November, Emap said: “Having reached the half way stage of the year in what is undoubtedly a tough environment, current trading indicates that the group remains on track to deliver in line with expectations.”

Analysts are forecasting pre-tax profits to come in at around £222m (€323.4m), compared with £205m (€301.3m) last time.

In July, Emap told its annual meeting that there had been an “encouraging” start to the financial year led by good growth in consumer magazine circulation in the UK.

Today the company backed that up with figures showing consumer magazine circulation revenues were up 2% in the UK, while advertising in such publications was up 5%.

It cited “strong growth” in titles such as Closer, Heat, Zoo and Match, and the successful launch of Grazia in February with sales of more than 155,000 a week. Together, Heat and Closer sell more than 1.1 million copies a week.

But problems continued in recruitment advertising, especially at the Nursing Times, where advertising volumes were down 30%.

Problems also continued in France, where news-stand revenues are expected to be down 7% and advertising down 5%, although the television listings titles such as Tele Star and Tele Poche continued to be stable.

In radio, Emap said it expected to outperform the advertising market in the first half of the year, up 2%. Its radio stations include Kiss, Kerrang and Magic.

In its statement, Emap said the outlook for the UK was “healthy” but things were more difficult in France due to the “weak” news-stand market and “uncertainty around the economy”.