UK media company Emap has warned investors that its revenue for the first half of this financial year will be less than expected, blaming falling interest in magazines for the dip.
In addition, underlying revenue for the full-year is also likely to be flat, the group confirmed at its annual general meeting today.
"Technology driven structural evolution and difficult trading conditions are combining to create a period of change and volatility in many of our markets," said Adam Broadbent, Emap's chairman.
The group is remaining bullish on its future prospects though, suggesting that a 'refocusing' of resources would still place Emap in a sound business position due to its market closeness and creative talent.
However, its shares fell 12 per cent following this morning's announcement to 734p.
Emap owns magazine brands such as Heat and FHM, as well as 34 commercial radio stations including Magic and Kiss.
It reported today that growth in weekly magazines had been experienced, but noted a sustained decline in men's and automotive publications.
Mr Broadbent added that radio advertising had increased, despite challenging market conditions.
"Revenue from our continuing businesses will benefit from acquisitions and launches. As trading conditions are likely to remain difficult, we will manage our operating cost base accordingly," he said.
Earlier this year Emap negotiated the sale of Emap France to Italian media firm Arnoldo Mondadori Editore for 550 million (£380 million), £285 million of which will be returned to shareholders.