Emap's half-year profits down 16% to £80m

LONDON - Emap's pre-tax profits have fallen by 16% to £79.7m for the six months ending September 30, but the group has said it is on track to meet its full-year performance expectations.

The media group, which announced in July that it planned to sell off its publishing and broadcasting assets, said its revenues for the six months ending September had increased 1% to £386m year on year.

Emap's operating profits also fell by 14% to £92m, and total revenues fell by 26% to £408m.

The group said it is still on track to complete the sale of its £1.5bn rated business-to-business publishing division, which includes Construction News, Architects' Journal and Nursing Times.

Reed Elsevier has also emerged as bidder for Emap's B2B operation. It has put in a first round bid and is about to carry out due diligence. Reed, which already owns a large number of B2B titles including Estate's Gazette, Hospital Doctor, Computer Weekly, Farmer's Weekly and Air Transport Intelligence, is said to want to buy some of Emap's titles. It is competing against venture capital firms like Apax.

Emap said its business-to-business division had experienced "good growth", while its consumer division was showing signs of improvements. Conde Nast is being seen as the leading contender to buy this business, which includes FHM, Grazia and Heat.

Emap's radio business, which includes Magic and Kiss FM, is currently subject to a bidding war between Global Radio and a Phil Riley-led alliance of two private equity investors. The business has delivered growth in revenue, audience and profit, according to the group.

Alun Cathcart, executive chairman of Emap, said: "Our performance in the first half gives us confidence that we remain on track to deliver against our expectations for the full year.

"Our B2B activities are demonstrating good growth and we have continued to invest in both the core business and new acquisitions.

"In our consumer magazines, forward bookings are showing signs of improvement and we are experiencing earlier than expected benefits from our operational efficiency initiatives."

Cathcart, who replaced Tom Moloney when he resigned from the company having been chief executive since January 2003, said the group was encouraged by the progress the review process was taking and that it would "maximise shareholder value".

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