Emap Group said Wednesday full-year profit will be at the low end of market forecasts because of disappointing results in its consumer magazine and radio broadcasting operations.
Emap operates two national commercial stations, Magic and Kiss, and several local radio broadcasters. The company also publishes FHM and Zoo magazines.
Emap is conducting a review of its businesses which it hopes will yield annual cost savings in excess of 20 million pounds (30 million euros; $40 million). However, it said those savings would not be fully achieved until 2008 or 2009, and it anticipates one-time costs and investment in new facilities will cost about 40 million pounds.
"The management actions we are taking are a positive response to prevailing market conditions and will allow us to continue our strategy of developing strong media brands across platforms," Chief Executive Tom Moloney said in a statement.