Emap digital revenue up, but magazines slide

Emap has predicted revenues from its digital products to rise significantly for the first half of its financial year while also expecting a two per cent drop in its total underlying revenue.

The company announced today that it expected overall revenue to be up six per cent over the period but the underlying figure - excluding the rewards reaped through selling Emap France and savings made through closing magazines - was likely to be a decline of two percent.

Following the sale of its French magazine division in August for £380 million, the company said it was continuing to migrate resources into fast growth areas and reshape the business for a digital future.

Despite the seeming revenue downturn the company said that it was on track to achieve its target of doubling digital revenues over a three-year period.

Digital revenue was expected to be £59 million, up 55%, driven mostly by B2B acquisitions.

Tom Moloney, group chief executive, said: "Digital revenue has grown by 55 per cent, led by B2B, and is on target to more than double over the next three years, as we continue to migrate resources onto faster growth platforms and reshape the group for growth.

"The successful sale of the French consumer magazines business and a significant increase in digital NPD demonstrate our commitment to this goal."

Emap spent £15 million on new product development in the period, £5 million more than last year, focusing primarily on digital initiatives.

However, underlying revenue from its international consumer magazines business is expected to be down 18 per cent - reflecting the tough trading conditions for FHM in the US - and UK magazine revenue is expected to decline by five per cent overall.

The drop off in magazine revenue was offset by strong growth at its business-to-business, radio and TV divisions.

Mr Moloney added: "Emap cannot defy market trends but we have a long experience of managing through cycles and our costs are firmly under control.

"We have many strong brands which enjoy excellent market positions. We are excited about the opportunities that new distribution channels and media platforms provide for us to extend the relevance and reach of our brands."

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