Emap issues profit warning
Emap has warned of a fall in profits and that its annual operating performance would be at the bottom end of market expectations. This warning comes after the company posted a four per cent rise in first-half profit just two months ago.
Radio stations and consumer magazines are most likely to fall, with the company announcing media markets in 2007/2008 would remain challenging.
Commenting, Tom Moloney, Group Chief Executive, said:
“The management 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. The fact we have identified substantial savings, given that we already operate on industry leading margins, signifies the progressive approach we are taking to operational efficiency. Recent acquisitions are improving our technology capability and we are migrating more resource to faster growth opportunities, particularly digital.
“Brands, content and deep relationships with the communities we serve are the enduring strengths of Emap and have allowed us to maintain market leading positions. These strengths underpin our strategy and when combined with improved technology skills will ensure we deliver sustainable growth.”
Emap announced jobs cuts less than two weeks ago, most of which have now been implemented across the radio stations.
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