IN&M benefits from profit rise at APN

The Australian newspaper group in which Independent News & Media is the biggest shareholder yesterday said it made record profits in the first half of 2006.

APN News and Media said that profits after tax and interest for the six months to the end of June were 72.1 million Australian dollars (€43.5 million), up 6 per cent on the A$66 million recorded during the same period in 2005.

APN said that basic earnings per share increased 12 per cent during the same period to 15.3 cent, and the board is proposing to pay an interim dividend of 9.7 cent, an increase of 10 per cent on 2005.

Profits before tax for the first six months were up 3 per cent at A$113.3 million from A$109.3 million during the first half of 2005. Revenue for the six-month period was A$606 million compared with A$604 million during the first half of 2005.

Total group earnings before interest and tax were A$147 million, a 3 per cent increase on 2005, when they stood at A$143 million. Independent News & Media holds a 41.8 per cent shareholding in the Australian group.

The figures show that newspaper publishing accounted for the bulk of APN's earnings at A$105 million, up from A$103 million a year earlier, an increase of just under 2 per cent.

Of this, regional publishing in Australia contributed A$56.9 million, compared with A$53.8 million in the year ago period. Earnings from its New Zealand national newspaper business declined by 2 per cent to A$44.8 million from A$49.1 million in 2005.

However, the group's outdoor advertising operations showed the strongest earnings growth, rising 49 per cent to $9.8 million from $6.6 million. APN's radio interests also delivered increased earnings at $35.9 million, up from $35.3 million. Losses at its online business increased to $1.8 million from $100,000.

APN is operating a share buyback programme. It recently announced that it would be extending this from an original planned total of 47 million shares to 65 million.

The company said yesterday that, excluding the impact of the cost of the buyback on its interest bills, after tax profit would have increased by 15 per cent.

APN publishes 23 regional dailies and over 100 non-daily newspapers in Australia and New Zealand.

Chief executive, Brendan Hopkins, said yesterday that the company was pleased with the result.

In its statement, the company said: "The board of APN News and Media continues to believe that, providing satisfactory trading conditions continue, growth in overall profitability will be in line with previous guidance."