Emap US profits warning

By THIS IS MONEY
Updated:

 

Publisher Emap has issued a profits warning for its US division, days ahead of the Valentine's Day launch of the American version of its laddish magazine FHM. The shares tumbled by 97p, or 7%, to 1312p.

Emap's US male-orientated magazines, including Hot Rod, were hit by a 7% decline in advertising revenues from the automotive big spenders such as Ford and General Motors in the last three months of 1999.

Emap has also suffered 'greater than expected losses' from its involvement with NBC Sports Ventures in Winter Gravity Games, a winter sports competition taking place on Mammoth Mountain in California.

Chief executive Kevin Hand says that some of the big US advertising spend has gone into the new media such as the Internet. However, he is confident that Emap 'will come back' in America.

Launch costs for the US version of FHM will amount to $10 million (£6 million), which Hand warned at the time of the company's interim results would have a 'material impact on profitability in the next financial year'.

However, the launch appears to be going well with 60,000 subscribers already signed up.

The French version of FHM is performing well ahead of original expectations with 'advertising showing good growth', Hand said. The British advertising and circulation trends of Emap's 150 titles 'remain positive with consistent improvements in underlying prof-itability'.

The digital interests of the group, which have been expanding rapidly, are making 'encouraging progress' following a series of multi-million pound investments, Hand added.

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