LONDON (Brand Republic) - Emap is to cut its internet investment by half and is expected to shed about 100 jobs from its digital operations.
The publisher said the reduction would result in a £10m charge in its full-year results, which are due to be announced on May 29. Internet investment in the year 2001-2002 would be roughly half that of the £25m invested in the current year, and the company expects to break even in 2002-2003.
Staff have been told of the restructuring plans, but the company has not released details of where the job cuts will come. Chief executive Kevin Hand insisted that Emap was still committed to its digital business, but said it was focusing on key projects where it was 鈥渃ompetitively advantaged鈥.
The company鈥檚 results are expected to be in line with expectations and, while its UK operations have continued to deliver underlying revenue and profit growth, its US division has suffered from disappointing advertising revenue in the second half.
It is now looking at a number of offers for the US division, which it bought in 1999 for £720m. At the time, the deal was criticised by some as being too expensive and the company is said to be resigned to making a loss on the sale. German media group Bertelsmann is believed to be top of the list of potential buyers
Yesterday, reports surfaced that investment bank Goldman Sachs was backing a plan to break up the company, claiming that its radio station Kiss FM would be worth £1bn alone, and the company鈥檚 total value would triple to £3bn if broken up.
Emap鈥檚 share price opened at 727p this morning, down from yesterday鈥檚 close of 730p.
www.emap.com