More on Emap
Emap: Sale of French magazines
Wednesday, 21 June 2006
The French consumer magazine business has been sold for 550m euros, approximately £380m. This is a revenue multiple of 1.2× and an EV/EBIT of 10×.
This is a good price for a declining business.
£285m is to be returned to shareholders.
It does not significantly change our view on the value of Emap, which is now trading on a prospective PE of 13× with a 3.5% yield. Without its weakest business this still looks like good value.
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