The sales growth of Heat magazine contributed to a rise in Emap’s pre-tax profits in the year to 31 March 2002 but corresponded to a drop in total sales, which the publishing group claimed was reflected in a slow advertising market and the sell-off of its US business last year.
Following the disposal of Emap USA last August, total sales dropped 11 per cent to £1.03bn from £1.15bn in the previous year. Pre-tax profits were up 6 per cent to £151m from £143m.
Emap’s consumer media division, home to the likes of Heat and FHM, saw an 8 per cent rise in sales to £324m, which the company attributed to "rising circulation and a resilient advertising performance".
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However, operating profit in the division fell by 10 per cent to £50m, largely reflected by investment in the launch of FHM’s US edition. A total of £13m was spent on launches in the year, down from £18m previously.
Sluggish advertising had a higher impact on Emap Communications, the group’s business-to-business division, which saw turnover fall 8 per cent to £194m and operating profit by 11 per cent to £54m.
Recruitment advertising underlying growth was up 2 per cent, while display advertising slipped 10 per cent, mainly affecting its media and telecom titles.
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Impact of the advertising downturn extended to radio division Emap Performance, where turnover fell by 1 per cent to £139m, and operating profits by 11 per cent to £41m.
By Wale Azeez
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