Emap Elan, which houses glossy magazines such as Elle and FHM, has experienced an 8% dip in advertising revenues following the creation of a single advertising house to sell across all Emap's print, radio and new media properties.
Unveiling Emap's interim results, senior executives admitted the creation of a centralised advertising unit in late 1998 was implemented too quickly and resulted in consumer advertising among the lifestyle titles underperforming, despite a buoyant market and a 9% increase in revenues from copy sales.
But Emap, under chief executive Kevin Hand, said it remained committed to the concept of a single sales house and that initial teething troubles were being addressed.
By contrast, Emap's music network, Emap Performance, which houses music brands such as Kiss 100 and music magazine Q, recorded a 25% increase in advertising revenues and operating profits were up 55%.
Emap revealed that its digital division, which includes Slam, the joint venture youth portal with Channel 4, is set to break even by 2003.
Emap UK's total revenues were up 3% to pounds 567m, while operating profits were up 2% to pounds 113m.