Emap: trading statement

9:19 a.m. Tue 28 Mar 2006

Emap's revenue growth was up in line with the first half with underlying growth of 2%. As this excludes new launches, organic growth is likely to be significantly higher. However this also excludes the decline in the French magazine business which Emap plans to sell: although the French business should not have a long term impact on it, its performance will affect the price it will achieve.

Radio revenues obviously received a big boost from the acquisition of SRH. Underlying growth was reasonable, given low growth in the sub-sector, at 1%. With radio audience share stable Emap radio is out performing the industry.

The business to business operations have been performing well. We would expect further drops in recruitment advertising as print (Emap's business magazines in this case) continue to lose ground to the internet. The rest of the business to business operations will continue to benefit from cyclical recovery that has some way to run.

At 894p Emap is trading on a prospective PE of 14× with a 2.8% yield. However given that growth in consumer magazines is a little slower than in the past and radio ad spend is weak. We would be inclined to wait and have another look at the company again once it has disposed of Emap France.