Emap profit dips 2% as record £16m is invested in new launches

LONDON – Pre-tax profit at Emap has fallen 2% to £95m in the six months to September 2005 as the media giant revealed it has spent a record £16m on new launches.

Overall advertising revenue was down by 3% for the first half of the year, which Emap blamed on the performance of the TV listings business.

Consumer magazine advertising was up 6% despite poor performances from its automotive titles, and Emap recorded a 5% increase in total consumer magazine circulation revenues after strong performances in the UK from titles including Heat, Closer and Zoo.

Concern remains about its international consumer magazines and recruitment advertising business in the business-to-business sector, which has been affected by "public sector budget constraints".

Performance in France was particularly weak, where operating profit was down 50% to £14m, partly due to the fall in TV listings advertising but also because of the £6m investment in the launch of Closer in France.

Tom Moloney, Emap chief executive, said: "A tough newsstand environment and record levels of launch investment have led to a reduction in first-half operating profit, but the group remains on track to meet our full-year's expectations."

Radio performed well with revenue up 23%. This included Emap stations such as Magic and Kiss, as well as the newly acquired Scottish Radio Holdings stations.

Emap blamed a more "challenging" environment in broadcast television advertising in general and increased competition for viewing hours for a 2% drop in music television revenue. It owns the Freeview music television station The Hits.

Net income rose to £56m from £53m a year earlier. Revenue was up 6% to £554m.

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