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Friday, July 14, 2006

EMAP shares drop 15%


Emap has suffered a mighty blow to its share price following its latest trading update to the city. Retiring Chairman Adam Broadbent (pictured) said,

'Technology driven structural evolution and difficult trading conditions
are combining to create a period of change and volatility in many of our
markets."

To be fair, the main problems for Emap are in its consumer divisions and the management claim that business media products are still showing growth. Actually what management actually says is that apart from the areas where business is declining faster than expected, they are enjoying growth. As I have reported before, the public sector recruitment revenues on which EMAP have historically relied for a substantial proportion of its b2b profits have collapsed.

What is clear is that what affects consumer media today will affect business media tomorrow. Steps have already been taken by Emap with the acqusition of Worth to move its future into the digital age. Expect to see Emap as an aggressive bidder in future acutions of business to business digital assets.

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