Big write-offs force Emap into the red

EMAP, the Kiss 100-to-FHM media group, today reported a mixed start to the new financial year, saying there was good underlying growth in magazine advertising but little sign of a recovery in radio revenues.

'There are signs that in the first quarter of the new fiscal year market conditions for certain of the group's businesses are improving,' Emap said after reporting a 6% rise in profit before tax and exceptionals to £151m for the year to 31 March.

However, heavy write-offs, including a £144m loss on the sale of its US business, left the company £69m in the red compared with a £157m deficit previously. Emap said the result, which was in line with market expectations, had 'restored its stability', leaving it well placed for future growth.

Turnover from continuing operations was 3% higher at £938m. 'This was a relatively strong performance in what has been a difficult year for the media sector as a whole,' it said. Operating profit before amortisation and exceptionals fell 1% to £182m, of which £15 million stemmed from the US business that was subsequently sold.

It said profits at the magazines arm, excluding its French titles, dropped 10%, mainly because of investment in the US version of men's magazine FHM. Underlying profit was ahead 1%. Underlying circulation revenue was up 6% with revenues rising 2% in a 'broadly flat' market.