34 | Magazine World | December 2007 fipp.com
regional focus
asia pacific
HOW EMAPCREATED
VALUE IN AUSTRALIA
After a decade of launching and acquiring
magazines for its local Australian subsidiary, British
media group Emap decided to unlock the value it
generated down under. What happened and why?
Chris Llewellyn gives Magazine World the scoop
O
n 12 September 2007, Emap Publishing and Bounty Publications. Philip
announced the sale of its Australian Mason was the CEO of Mason Stewart and was
subsidiary to ACP Magazines the licensee of several Emap brands including
Limited, the biggest magazine Smash Hits, while Arthur Bateman, CEO of
publisher in Australia, thus bringing to an end Bounty Publications, was the licensee of Emap’s
a 10-year chapter for Emap in the land down parenting brands Mother & Baby and Pregnancy &
under. Since the announcement, my international Birth. Emap Australia was created.
colleagues and competitors have been asking me FHM, then a dominant men’s magazine in
the same question: why? Let me explain. the UK but with only one other international
We chose to crystallise the value we had edition (Singapore, as it happens), was to be
created in Australia and it’s right to say that the Emap Australia’s first launch in early 1998. It was
price we received was viewed very favourably profitable in its first year and market leadership
by our shareholders. For a total investment in was quickly reached. Further launches proved
Australia of some A$29 million (€18 million) tougher as the two gorillas in the marketplace,
on acquisitions and launches, we have had the ACP and Pacific Magazines, fought to defend
benefits of a decade of profits and have sold the their positions.
company for A$94 million (€54.5 million). A foray into the young women’s market, Minx,
We also retain the benefit of a licence fee closed quickly and Golf World lasted a year. More
revenue stream from our brands such as FHM, successful were the launches of Empire and
ZOO Weekly and Mother & Baby, and an exciting recently, ZOO Weekly. This latter title has been a
new relationship with a highly advantaged huge success with a new ABC figure of 116,000, up
partner in Australia. ACP gets 25 magazines, a 35 per cent year on year, and Launch of the Year
team of talented people and access to Emap’s UK awards from the Magazine Publishers of Australia
mastheads and know-how. A win-win situation (MPA) and the Australian Newsagents Society.
for all concerned. Acquisitions were an important part of the
It all started in 1997. We acquired two Emap Australia story. In February 2000, New
companies simultaneously – Mason-Stewart Woman was bought from Murdoch Magazines.
After a tough initial turn-round period, New Woman
went from strength to strength and it was a proud
“In October 2006, Australian media
moment in our Sydney offices the night in 2004
that it won the MPA’s prestigious Magazine of the
ownership laws changed… and a
Year Award. I believe the team allowed themselves
a small sweet sherry each to celebrate.
OK, that might be British understatement, but
media land-grab was triggered”
there is an important point. Emap Australia really
did capture the values of a parent company even
though ‘headquarters’ was 12,000 miles away.
The people worked hard but played harder. The
internal awards nights were brilliant occasions –
a cross between a rock concert and a religious
cult’s rally. The touch rugby games in the local
park were as important as the board meetings and
budget reviews. Emap in Australia truly stood for
Every Meeting A Party!
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