Reed Elsevier sees gradual recovery

29th Jul 2010 07:15

Variety magazine publisher Reed Elsevier said advertising and promotion markets are stabilising as underlying revenues increased 1% in the first half.The Anglo Dutch publishing firm said it had noted improved overall trading performance. For the six months ended 30 June adjusted operating profit fell 3% to £758m Revenue stood at £2.99bn. Adjusted earnings per share fell 13% to 21.3p after July 2009's equity placing.It also reiterated expectations for a modest decline in adjusted operating margin year on year due to a weak revenue environment and increased investment in legal markets.Chief executive officer Erik Engstrom commented, "While we have seen an improvement in the general economic environment and the actions we are taking are beginning to bear fruit, recovery will be gradual as conditions remain constrained in many of our markets." "Any sustained recovery remains dependent on improving economic conditions and is expected to be gradual," the group said. Reed's interim dividend is unchanged at 5.4p.