British media group Emap Plc said circulation and advertising revenue for its UK consumer magazines were good at the start of 2005 as it told investors it should meet forecasts for the year to the end of March. The publisher of men's magazines FHM and Zoo and owner of radio stations Magic and Kiss FM said, in an update that caught analysts by surprise, that French news-stand sales would be weak in January and February and that the advertising market there would be tough.
Emap had said in November that its French TV listings magazines, which have been pummelled by two new competitors in the market, had halted their decline on the newsstand.
"Whilst the market has been concerned that things could get worse in France before they get better ... it appears that the situation has shown no further deterioration," Bear Stearns analysts wrote in a note to clients on Monday.
French newsstand sales fell 25 percent in the six months to the end of September, while overall circulation sales were down 16 percent, and advertising revenue declined by 5 percent.
"As stated at the time of Emap's interim results announcement, the board is confident of achieving its full-year expectations," Emap said on Monday.
Emap's comments on full-year trading through March 2005 were made just ahead of scheduled meetings with its US investors.
Analysts on average are expecting annual revenue at Emap of 1.08 billion pounds ($2.03 billion) and earnings before interest, taxes, depreciation and amortisation of 231.6 million pounds, according to Reuters Research.
"Overall, we believe this update is consistent with our forecasts for the year to March 2005," the Numis media team said in a note. The firm has an 899 pence price target for Emap.
Emap shares, which rose 5.7 percent last week to an eight-month high, were down 1.6 percent at 844 pence in midday trade on Monday.
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