Emap bounces back as it returns to FTSE 100

LONDON - Media group Emap has rejoined the FTSE 100, proving it is well on the road to recovery after a disastrous foray in the US magazine market, which saw its shares dive to as little as 455p a year ago.

Emap bounces back as it returns to FTSE 100

This morning Emap's share price was down 3.5p or 0.48% at 718.5p, a long way off its high of 1,675p in January 2000, but a lot higher than its low in September 2001.

The company's promotion will demonstrate its resilience at a time when the media sector as a whole is struggling in the face of the advertising downturn.

Emap said last month it expects to report second-half profits for the six months to September to be well ahead of last year, with revenues set to climb 5%.

The company's outlook has been helped by a strong performance by its weekly celebrity magazine Heat, as well as its market leading titles such as lads mag FHM, and its radio station Kiss FM.

However, the industry is keeping a close eye on Emap, which recently lost cash cow Elle and Red magazines to Hachette Filipacchi. The two publishers used to jointly produce Elle and Red, as well as New Woman, but Hachette reclaimed the magazines when it set up its own UK publishing company after buying Attic Futura for £40m.

Hachette UK is headed up by Kevin Hand, who as chief executive of Emap was responsible for the collapse in the company's share price after he led the company's takeover of the Petersen publishing house in the US, which it later sold at a huge loss.

Emap replaces gas network operator Lattice on the FTSE 100, and with a market capitalisation of £1.8bn.

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