Australian media group APN has signalled it is again in the market for acquisition opportunities, almost three months after investors blocked an attempt by 38.3 per cent shareholder Independent News & Media (INM) to take the business private.
The renewed interest in acquisitions comes amid an easing of ownership restrictions on Australian media assets. In interim results yesterday APN forecast growth of 5-10 per cent in its net profits after tax for the full financial year. The group increased its interim dividend by 8 per cent to 10.5 Australian cent per share.
Revenues before non-recurring items rose 2 per cent to A$633.7 million (€390.75 million) and earnings before interest, tax, depreciation and amortisation rose 3 per cent to A$160.4 million when excluding finance income from businesses closed or sold in the prior year. The net profit after tax was five per cent higher at A$73.2 million.
"The company is in a sound financial position, with access to capital for worthwhile growth opportunities," APN said in its results statement. "The second half of the year is traditionally our busiest trading period and we are well-placed to profit from changes that have been made to our business model and the ongoing growth of our portfolio of assets across a broad range of economies and geographies."
Chief executive Brendan Hopkins was reported in the Australian media as saying there had been "no more conversations and no more approaches" since shareholders rebuffed the A$1.93 billion take-private attempt by Sir Anthony O'Reilly's INM with private equity groups Providence and Carlyle.
"If the right opportunity comes up, which is appropriately priced, then we've got plenty of firepower," Mr Hopkins said of acquisition opportunities. "We're obviously very conservatively and prudently geared at the moment, and that does put us in a position where if the right opportunities come up, we can move."
Mr Hopkins had "no comment" on the possibility of acquiring a number of former Rural Press radio stations in Queensland and south Australia, which are being sold by the Fairfax Media group. Australian media say local analysts believe such assets could sit well within the APN group.
Both INM and APN are continuing with their share buyback programmes. Last month APN reinstated share buy-backs suspended when INM sought to take the group private.
