Emap consumer magazines hit by 13% fall in ad revenues

LONDON - Emap has suffered a sharp 13% drop in April-June advertising revenues at its consumer magazines division, with the likes of FHM struggling, according to a trading update today.

With the division's circulation revenues falling 4%, overall consumer magazine income was down 8%.

Titles such as FHM and Max Power were struggling in 2006, but had been offset by the momentum behind women's weeklies such as Closer and Grazia.

The company blamed the fall on a strong quarter last year, the renegotiation of some advertising deals and a short-term impact on revenues from a restructure of its advertising sales teams.

"With the new advertising deals and new teams in place, the forward-booking outlook has improved. As expected, however, the men's market continues to be weak."

The radio division's revenues were flat, although if the Republic of Ireland stations currently up for auction are excluded they are down 2%.

The downturn in Emap's consumer divisions is despite year-on-year growth of 34% in their online and mobile ad revenues.

However, Alun Cathcart, the group's executive chairman, said it was on track to deliver against expectations for the full financial year, which runs to March 31 2008.

Its business-to-business quarter revenues climbed 10% and it expects the division's trading to be robust for the rest of the year.

As a result, the group's overall revenue is down 3% on a year ago.

This morning Emap's share price fell 0.36% to 825.5p.

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