NEWS: EMAP PLC RADIO DIVISION HALF-YEAR RESULTS OUTPERFORM UK COMMERCIAL RADIO MARKET by GRANT GODDARD

www.grantgoddard.co.uk November 2006

EMAP plc's radio division is continuing to outperform the industry in revenue terms, but it views the outlook for radio advertising as merely “reasonable“. In its results for the half-year ended 30 September 2006, the division’s revenues grew 5% year-on-year on a like-for-like basis, although the operating margin fell from 22% to 19% and operating profits fell by 1%. These comparisons include Scottish Radio Holdings plc as if it were owned for the whole period, demonstrating that although EMAP succeeded in improving the yield from these acquired stations by 14%, it achieved no more than a 'flat' performance in its core brands. The company says its margin was affected by “increased investment in programming and marketing, in particular around 'Magic 105.4' in London”. Half-year operating profit was £15m on revenues of £81m. EMAP leads the commercial sector in digital radio, capturing five out of the ten most listened to digital stations. Group chief executive Tom Moloney said: “We are not anticipating any near term improvement in the consumer trading environment.”

[First published in 'The Radio Magazine' as 'Emap: Results And Review', #762, 15 November 2006]

Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of experience in the broadcasting industry, having held senior management and consultancy roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at http://www.grantgoddard.co.uk

News: EMAP plc Radio Division Half-Year Results Outperform UK Commercial Radio Market ©2006 Grant Goddard

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