Restructure hits Emap sales

Emap Advertising has announced a pounds 1 million cross-media deal with a major beverage brand, but admitted revenue performance last year was hampered by the disruptive advertising sales restructure.

Emap Advertising has announced a pounds 1 million cross-media deal

with a major beverage brand, but admitted revenue performance last year

was hampered by the disruptive advertising sales restructure.



The recently formed Emap Advertising operation has been set a revenue

target of pounds 25 million, to be gained from cross-media deals over

the next three years.



The drinks brand win follows hot on the heels of last week’s

announcement of another pounds 1 million cross-media deal to promote

BT’s GetOutThere youth internet venture.



The name of the drinks brand is not being revealed at the moment, but

the deal is thought to run across Emap’s music and men’s lifestyle

magazine brands such as FHM and Q, as well as radio stations including

Kiss.



Annual results, announced last week, revealed Emap’s UK consumer

magazine revenues grew by only 1 per cent last year and revenue from the

business magazine group fell by 2 per cent.



Chief executive Kevin Hand blamed the disappointing performance on

disruption caused by the creation of Emap Advertising’s cross-media

sales operation.



Total UK revenue, including radio, was pounds 591.5 million for the 12

months to March, an increase of 0.6 per cent.



Defending the results, Hand said Emap had pursued a strategy of

improving ad yields and developing new revenue streams from its magazine

brands.



This, he said, had resulted in a more profitable mix of revenues.



He admitted the merger of the magazine, radio and online sales teams had

caused internal disruption as people moved to new locations. Hand said

this had slowed the rate of growth in the last quarter of the year.



The chief executive also warned that the negative impact of this

disruption would carry through to this year’s first-quarter results. The

restructure was first announced last November and was completed in

April.



The group has set aside pounds 75 million for investment in digital

projects.



Other investment this year will be concentrated in rolling out

international editions of FHM. Launches are planned in Germany, Brazil

and Taiwan.



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