Emap broadcasts below-par earnings

Published on Thursday 8 February 2007 11:54

MEDIA group Emap expects its annual profit haul to be at the lower end of City expectations, which currently range between £185 million and £198m.

The group, which owns Radio Forth and a host of magazine titles such as FHM, Zoo and Grazia, said it was facing challenging conditions at its consumer magazine and radio operations.

But the firm - which bought Forth parent group Scottish Radio Holdings in June 2005 for 391m - said its business-to-business division had performed well, with its performance driven by recent acquisitions.

The London-based firm, which banked flat pre-tax profits of 95m for the six months to September 30, said it was close to completing a series of reviews aimed at cutting costs across the group. It said the plans should enable it to generate cost savings of up to 20m a year, delivered over the next two years.

Chief executive Tom Moloney said: "The actions we are taking are a positive response to prevailing market conditions and will allow us to continue our strategy of developing strong media brands across platforms."

Panmure Gordon analyst Alex Degroote said: "Advertisers are following circulation trends and moving to the internet."