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Emap trading statement
Emap’s French consumer magazines continued to be the worst performing business (in the year to March 2004) with both circulation and advertising revenues down 10% year-on-year, although the decline should stabilise in the coming year. The French operation as a whole saw an underlying revenues decline of 7%. Radio recovered sharply in the fourth quarter offsetting declines in music magazines and in radio itself in the first half to give the music business underlying sales that stayed flat overall and with some signs of growth momentum at the end of the year.
Emap’s UK consumer magazines and Emap Communications (business magazines, exhibitions and conferences) produced underlying sales growth of 6% and 7% respectively. The former is line with the first half but the latter implies a weaker second half.
The continued growth in UK consumer magazines (Emap’s most consistent growth driver), the stabilisation in France (largely because so much of the damage as already occurred) and the return to growth of the music businesses means the outlook for this year is good despite the lower growth in business media and the continued decline we expect in music magazines.
Despite the good growth prospects for Emap’s UK consumer magazines business which has both an excellent track record and strong recent launches to drive growth, concerns about the French and music businesses are reflected in the rating, hence Emap’s 13 × PE and 3.2% yield.
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