Jagran Prakashan, the Indian publisher in which Independent News & Media has a 20.8 per cent stake, recorded a 26 per cent increase in second-quarter profit thanks to higher income from advertising.

Net profit was 220 million rupees (€4 million) in the three months to September, up from 175.4 million rupees in the same period last year. Operating revenue meanwhile rose 23 per cent, to 1.8 billion rupees.

Jagran, which publishes Dainik Jagran, India's most-read daily newspaper, said advertising and circulation revenue continued to show robust growth, with increases of 25 per cent and 8.4 per cent respectively when compared to the same period last year. It said the increase in advertisement revenue was driven by higher rates and an increase in space sold, while the rise in circulation revenue came mainly from an increase in circulation.

The company said I-Next, a newspaper launched in the third quarter of the last fiscal year in Kanpur and Lucknow, had made significant improvements. City Plus, another newspaper brand launched in the outskirts of New Delhi last year, has expanded into New Delhi and Bangalore.

Jagran yesterday also announced that, subject to shareholder approval, its shares will be split in a ratio of one-to-five - shares of 10 rupees will be split into five shares worth two rupees - to make the stock more attractive to a broader investment base.

On a six-month basis, first-half profit increased 40 per cent, to 567.2 million rupees, while operating revenues were 29 per cent ahead, at 3.6 billion rupees.

Jagran will pay an interim dividend of five rupees a share.