Emap warns of impact from US publisher

EMAP, THE magazine publisher and radio broadcaster, warned yesterday that first-half advertising revenue growth at Peterson, the US magazine publisher it acquired for $1.5bn in February, would be "slightly slower" than expected, while investment in the Internet is to be higher-than- forecast.

The lower-than-expectedrevenue is expected to dent Peterson's operating profit for the six months to September by about $2m. But that is to be offset, EMAP said, by better-than-expected trading in the UK and France where the group has consumer magazines like Smash Hits, Elle and Top Sante as well as business magazines and radio stations.

Emap shares, which have slid 44 per cent since March, rallied briefly, but closed down 52p at 826p on the update, which preceded presentations to analysts and fund managers. One analyst blamed the latest share price fall on the higher Internet spending. "It's difficult at this stage in the Internet's development to put any figure on it," said a source, commenting on the increased on-line investment.

In recent months, Emap has being reviewing its Internet plans. It has sought to advance efforts in areas which deliver transaction revenue and in June forecast investment of pounds 8-pounds 10m for the year to March.

In the US, advertising sales growth at Emap Peterson is expected to improve in the second-half. The launch of an American edition of lad mag FHM, Emap said, has received an "enthusiastic" response from advertisers.

The company's on-line activities, now grouped under Emap Digital, are expected to generate pounds 10m of revenue this year.