Profits fall forces Emap to sell flagging French division

by Ben Bold, Campaign 03-Mar-06

Emap has announced it is selling off its flagging French magazine business - a decision, it said, that was made after a review of strategic investment priorities.

The announcement marks a change of strategy for the publisher. Last
November, the Emap chief executive, Tom Moloney, responded to reports
that the rival media company Lagardere was preparing a bid for Emap's

French titles by saying that product launches were the "best way

forward" for the business.

Last year, Emap revealed that profits at its French division were down
by 50 per cent to £14 million. The decrease was partly attributed
to Emap investing £6 million in the launch of the French version
of Closer and a fall in advertising revenues across its portfolio of TV
listings magazines.

Proceeds from the sale of the division will be passed on to Emap's
investors.

Emap's French arm publishes around 50 magazines, including the French
edition of Closer, the women's title Pleine Vie and Tele Star.

Moloney said: "Emap has generated significant value by growing Emap
France into a leading consumer magazine publisher and a strong position
in its market, an attractive portfolio of established titles and a
record of successful launches.

"We have positioned the business for growth and are now starting a
process aimed at realising value."

The publisher has appointed the financial public relations consultancy
Citigroup and the bank BNP Paribas to advise on the sale of the French
business.

Emap first entered the French market in 1990 through a joint venture
with Bayard Press. Four years later, it grew its share of the magazine
market to 10 per cent by acquiring Edition Mondiale and Hersant.

In 2003, it strengthened its hold on the marketplace by buying Excelsior
Publications for £62 million.