Deutsche Bank Bearish on Consumer Magazine Industry

February 4th, 2008

A recent report from Deutsche Bank predicted that revenue performance will continue to be constrained in 2008, with fast-growing online revenues failing to offset erosion in other parts of the business.  In particular, the report cites the recent Emap consumer magazines sale for 9.5 times EBITDA – compared with an average 11.3x EBITDA M&A multiple for the industry — “‘…as a clear indicator of the pressure on consumer magazine asset values at present.’”  Women’s Wear Daily  (Feb. 4, 2008)

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