Emap profits rise as radio and consumer titles take off

LONDON - Emap has posted a pre-tax profit up 9% to £244m for the financial year ending March 2006, following acquisitions in its radio and events businesses and successful consumer magazine launches such as Grazia.

The media company said that the group's figures show an overall improvement compared with the previous year.

In contrast with 2005, launches contributed an additional £25m in revenue and acquisitions contributed an further £76m.

However, on an underlying basis, revenue was up just 1%, with growth held back by the performance of Emap France and the ongoing weakness in the B2B sector.

In February 2005, the group launched glossy magazine Grazia, and within the year closed or sold 10 titles, including Mixmag, Period Living, Slimming and Health Plus.

First launched mid-May 2006, and is hoped to extend the portfolio of women's lifestyle weeklies.

The closure of Smash Hits! magazine after 28 years was a significant move, but the brand aims to continue to reach the teenage audience through other platforms such as the internet and TV.

Radio revenue was up 44%, including the Scottish Radio Holdings acquisition, while television was up just 1%, due to the challenging TV advertising market.

Events business revenue increased 12% on the back of having the Cannes Lions International Advertising Festival for the first time, following its acquisition.

Tom Moloney, group chief executive of Emap, said: "Our strategic priorities remain targeted investment in core brands to accelerate growth, the launch of new products to meet changing customer needs and acquisitions to strengthen our market positions and increase the group's exposure to faster-growing platforms."

Emap proposes a 20% increase in its dividend in line with its revised guidelines.

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