APN News & Media, the Australian group 41 per cent-owned by Independent News & Media, has reported strong growth in the half-year to the end of June, with net profits up 31 per cent to A$21.9 (£11.1 million). Total sales for APN were up 30 per cent to A$294.6 million while pre-tax profits rose 35 per cent to A$49.3 million.

APN chief executive Mr Vincent Crowley said that there had been strong growth in all the group's activities - newspapers, radio and outdoor advertising - and while not making any forecasts, he said he expected APN to generate its eighth successive year of profit growth.

Mr Crowley said that future growth at APN would be both organic and by acquisition and added that with strong interest cover - interest charges in the first half were covered almost eight times by operating profits - APN would not be constricted by finance when it comes to acquisitions.

He would not comment on specific acquisitions, but said: "Fairfax and News Corporation have regional papers, they might like to sell and there is one other large independent regional group, Rural Press. "If anybody wants to sell, we'll be there."

He added that APN now has radio coverage in most of the metropolitan centres in Australia and New Zealand and that expansion opportunities are more likely to come from new licences in other markets in south-east Asia. Likewise, expansion in outdoor advertising will be targeted at south-east Asia, with APN already active in Hong Kong and Singapore.

"Outdoor is a natural vehicle for expansion in the region, it's a fair, transportable thing and isn't subject to the sort of restrictions there can be in newspapers and radio. There's a lot less regulation."

In the first half, all sections of APN operations were well ahead, but outdoor advertising - with 85 per cent growth in earnings before interest and tax - was the undoubted star. Regional newspaper profits were up 11 per cent - boosted by the inclusion of the Gympie Times titles - while broadcasting EBIT was up 46 per cent.