This trading update provides an overview of Emap plc's revenues and general trading for the six months ending 30 September 2004, prior to its interim results announcement which is scheduled for 16 November 2004, and before entering its close period. The figures below are unaudited and include headline estimates for the month of September, and may therefore differ slightly from the final numbers that will be reported. All revenue growth figures are given year-on year.
The headlines are as follows:
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Total Group revenues up 2%
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Underlying* Group revenues up 2%
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Emap Consumer Media - up 6% (up 6% underlying)
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Emap Communications - up 10% (up 8% underlying)
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Emap Performance - down 3% (down 3% underlying)
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Emap France - down 4% (down 4% underlying)
* Underlying, or like-for-like, excludes acquisitions, disposals, launches, closures and the impact of foreign currency movements.
Total revenues across the Group's continuing operations for the first six months are expected to increase by 2%. On an underlying basis, revenues are also expected to increase by 2%.
In the UK, consumer magazine copy sales revenues have again maintained good momentum, up 5% on an underlying basis, with Closer, still only two years old, being a key driver, but growth also coming from the core portfolio. Particularly strong titles have been Match, Bliss, FHM, Empire and Arena. Revenues from Emap's new men's weekly magazine, ZOO, launched in January 2004, are ahead of plan with well over 200,000 copies sold each week. ZOO is not yet included in the underlying figures.
Consumer magazine advertising in the UK has increased by 3% on an underlying basis, again boosted by Closer, but with some strong gains across the core portfolio driven by Sneak, Mojo, Yours, Empire, Arena, heat, Bliss and Your Horse.
In France, consumer magazine newsstand revenues are down 8% on an underlying basis, largely reflecting the fall in newsstand revenues of Télé Star and Télé Poche of just over 20%, following the launch of rival fortnightly titles into the TV listings sector. As predicted, subscription revenues increased by 1% on an underlying basis.
Consumer magazine advertising in France decreased by 4% on an underlying basis, in an increasingly difficult market. A reduction in yields of approximately 10% across Télé Star and Télé Poche, and weakness in both the womens and men's titles, was partially offset by gains within the automotive portfolio, Auto Plus in particular.
B2B display advertising started the year slowly but gained ground in the second quarter, resulting in growth of 4% on an underlying basis for the six month period. Growth is coming from across the portfolio with Construction News, Screen International, Meed and Broadcast particularly strong. Recruitment advertising increased by 2% on an underlying basis, with Local Government Chronicle leading the way.
Revenues from trade exhibitions have been extremely strong, up 14% on an underlying basis, reflecting the performances of the key shows The Autumn Fair, Glee and Pure Womenswear, as well as the TradeExpo exhibitions in Paris acquired as Agor in January 2003. The underlying figures do not include several new shows successfully launched this year in the UK and France, or recent acquisitions.
Radio airtime revenues from Emap's analogue and digital stations in the UK reduced by 2% in the first half. After a weak first quarter, when the business traded against tough comparable numbers, the second quarter demonstrated solid growth, with national advertising particularly strong towards the end of the period.
Revenues for Emap's music television stations increased by 13% with a higher cost per thousand driving performance. The Hits on Freeview was Emap's strongest performing channel.
Current Trading - October 2004
Forward advertising bookings for UK consumer magazines indicate a level of growth marginally ahead of that achieved in the first six months of the year. In France, advertising remains tough across the portfolio, with no evidence that the recent improvements in the broadcast sector are flowing through to consumer magazines. However, the relaunch of Télé Star in early September is going well, and plans to relaunch Télé Poche are being advanced.
B2B display advertising continues to strengthen, but recruitment advertising remains quite volatile. Forward bookings on the Group's key exhibitions indicate that the strong growth achieved in the first six months will continue.
Advance bookings for radio into October are good. The indications are that the improved trading conditions in the second quarter are continuing across the autumn, with revenue growth of approximately 10% across both September and October. Television revenues continue to be robust into the autumn.
Full Year Outlook
With the current financial year now at the half-way stage the UK businesses have performed in line with expectations, while there has been no further deterioration in France. The Board therefore believes the Group is on target to deliver full year growth in line with its expectations, albeit more weighted towards the second half than previously envisaged.
A further trading update will be provided with the interim results on 16 November 2004.
For further information please contact:
Emap plc 020 7396 2323
Gary Hughes, Group Finance Director
Miranda Acland, Group Communications Director
Brunswick Group 020 7404 5959
Patrick Handley
Ed Williams
