Strong signals from Emap in wake of SRH takeover deal

Published on Tuesday 23 May 2006 11:41

MEDIA group Emap, the new owner of Radio Forth, today reported a nine per cent hike in annual profits, as the business benefited from recent acquisitions and new consumer magazine launches.

Emap, which acquired Radio Forth and sister station Radio Clyde as part of last year's 391 million takeover of Scottish Radio Holdings (SRH), posted pre-tax profits for the year ended March 31 of 223m on revenues totalling 1.15 billion.

The company - owner of magazine titles including FHM and Closer - also told investors that trading in the first few weeks of the new financial year had been in line with expectations.

During the year, radio revenues surged 44 per cent including the SRH acquisition, but were up by only one per cent when the deal was factored out. Emap said its radio division, which also includes stations Magic and Kiss, had "outperformed a weak radio market".

It confirmed that cost savings from the SRH acquisition were feeding through.

Chief executive Tom Moloney 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."

Underlying revenue at the group's UK magazines division was up three per cent for the year, and seven per cent when including new launches.

Meanwhile, events business revenue was 12 per cent higher on the back of having the Cannes Lions advertising festival for the first time, following its acquisition.

Analysts had been expecting group pre-tax profits of 220m on revenue of 1.15bn.