Results aplenty, but talk is of takeovers

Music group EMI is releasing results on Wednesday, but the focus is likely to be on the possibility of a takeover bid for the troubled record label rather than its full-year figures.

Reports suggest that the home to stars including Lily Allen, Norah Jones and Robbie Williams has opened its books to potential suitors. Warner Group is said to be back in the picture, after EMI rebuffed its most recent offer earlier this year. A number of private equity firms are also thought to be interested, including One Equity, Cerberus Capital and Fortress.

Analysts are not expecting to hear much from EMI on the bid this week, although the group has reportedly set the deadline for formal bids to coincide with its results on 23 May.

There may be a little update on this process, according to UBS analysts, who also say there may be news on EMI's digital plans and its agreement to sell digital music without content protection, as well as any plans for selling the Beatles' catalogue online. The figures themselves are not expected to carry too many surprises, given that EMI gave guidance just a month ago for underlying earnings of 174m, down from 276m the previous year.

Publishing group Emap will release its full-year results tomorrow following a difficult few months for the group.

The publisher of Heat and FHM has published profits warnings and job cuts since the start of 2007, following tough trading conditions at its consumer magazines and radio divisions.

The troubles led to the resignation of chief executive Tom Moloney last week, which sent the firm's shares soaring 7 per cent.

Emap said in February that current restructuring would result in savings of about 20m a year. However, this will also result in one-off costs of 40m. It has also said it was exploring options over its Irish radio stations, including a disposal.

Analysts at Kepler Teather & Greenwood Merrion forecast pre-tax profits of 191.9m for the year to 31 March, compared with 221m last year.

They note that business-to-business publisher United Business Media has been heavily pursuing internet acquisitions to keep pace with the turn to digital and have raised questions over whether Emap will initiate a similar strategy.

Fellow radio group Chrysalis is currently reviewing its radio operations and eyes will be on any future plans for Emap's stations, including Kiss and Magic.

Analysts are looking for signs of continued recovery at Cable & Wireless when its posts its full-year results on Thursday.

At its interim results in November the group said it had exceeded its own earnings expectations for the six months to 30 September, and raised its profits forecasts for the whole year to between 145m and 150m.

The move follows the success of its strategy to switch its focus to fewer but larger corporate clients at its business telecoms arm Energis, acquired two years ago.

C&W has so far refused to rule out a break-up of its business by spinning off its UK and international operations. It is also rumoured to be putting in place plans to sell the separate businesses but has said that such a move would only follow if it completed the turnaround of its UK division.

C&W has undergone a period of rapid change since 2004, with a programme of staff cuts set to reduce its head count to between 2,500 and 3,500 by the end of the decade - a potential drop of 50 per cent on the 5,614 employed in March last year.

Investec Securities is predicting a further strong performance from the group over the second half of the year and forecasting pre-tax profits 174.3m, compared with 211m last year.

Yellow Pages directories business Yell has become a potential bid target after shares slumped last month. The stock came under pressure as Yell said revenues were likely to grow by a weaker-than-expected 3 per cent in the United States during the current financial year, which runs until next March. Analysts had been expecting a figure of between 8 and 9 per cent, so the cut put pressure on profits expectations. Yell said competition in the US had intensified as incumbents sought to protect their share of the market and as new books were published.

With the group's valuation under pressure, analysts said the recent wave of merger and acquisition activity in the media sector could now focus on Yell. Search engine Google and private equity firms have been mentioned.

The warning about US trading will impact on next year's results, but in the meantime Barclays Wealth is looking for this year's profits to show an increase of 78m to 395m. The results are due tomorrow.

THUS TO REPORT ITS LAST LOSS

INTERNET service provider Thus is expected to report much swollen sales figures and the last of its losses this week after a major acquisition last year.

The Glasgow-based company is expected to reveal turnover of about 530 million following the acquisition of Your Communications and new contracts, cutting losses to between 14m and 20m, with profits beginning in the current financial year.

However, some analysts have warned that the Your Communications deal, which left United Utilities as a 23 per cent shareholder, creates significant overhang that could weigh on the share price.