|
Emap chief replaced
|
 |
May 29, 2001: 5:30 a.m. ET
CEO Hand goes after UK media group's unsuccessful U.S. foray
|
LONDON (CNN) - UK media group Emap on Tuesday reported a £558 million write-down of its U.S. assets and the resignation of its chief executive Kevin Hand.
In its results for the year to the end of March, Emap reported a pretax loss of £527 million ($740 million) compared to a proft of £157 million in the previous year. Revenues grew 5 percent to £1.15 billion.
Hand was responsible for Emap's foray into the U.S., where it bought Petersen, a publisher of 110 magazines, two years ago for $1.2 billion.
But trading conditions have been difficult with advertising and subscription revenues down, and Emap is now looking to sell its U.S. unit.
The write-down values it at around $700 million from $1.5 billion. Investments in U.S. Internet start-ups were also being written down as worth $18 million less.
"Kevin Hand did have to fall on his sword, the investment in the U.S. did seem badly timed with hindsight," Benedict Lawson of Barclays Stockbrokers told CNN.
"It's time for Emap to pack up its tent and steal into the night when it comes to its U.S. expansion."
But Emap's men's magazine FHM is the fastest-growing title in its sector in the U.S. and would not be part of any sale. The magazine was also the market leader in France and will be published in 15 countries when its Russian edition is launched.
FHM.com is the UK's largest destination site, according to Emap, with 1 million unique users. Emap Digital aims to break even by the end of 2003. It closed or cut down a number of online projects in March, creating an exceptional charge of £10 million.
Hand has been replaced as chief executive by chairman Robin Miller with immediate effect, while Adam Broadbent, a non-executive director since 1997, has become chairman.
"The fact that we are reviewing the future of our U.S. business is well known and we expect to be in a position to make a final announcement on this in the near future," said Miller. 
|
|
|
|
|
 |
|
