Competition is fierce for space on the shelves

The warning comes despite 12% increase in full-year profits to �196m for Emap, whose empire covers magazines such as Closer and the Kiss radio station.

However, its Tele Star and Tele Poche listing magazines have suffered from fierce competition.

In early morning trade its shares fell 9.5%, before recovering slightly.

Finance director Gary Hughes told reporters that Emap's earnings, though still growing, will be off analysts' estimates by "anywhere between �5m and �10m".

The business is in overall good shape Tom Moloney, chief executive See Emap's latest share price

"There has been a frenzy of competitive activity," said Emap.

"We're still expecting profits and revenues to grow again this year but not as much as what people expected," Mr Hughes said.

Bad circulation

Circulation for Tele Star and Tele Poche is down 15% to 20% since the start of the financial year.

The magazines make up about 10% of Emap's total revenue, but new predators in the French market, such as Bertelsmann's Prisma unit, have put margins under pressure

However, chief executive Tom Moloney was upbeat about the company's prospects.

"The business is in overall good shape. Whilst we face some major challenges in the year ahead, we're ready for them, and we expect to continue delivering growth," he said.

The group's consumer magazine division enjoyed gains in circulation and advertising revenue thanks to the popularity of Closer and the new weekly men's magazine Zoo.

Other titles performing well included Arena, Empire, More and Match.

In its music division, radio revenues were up 8% but profits fell due to a �2m investment in digital radio.