Independent News & Media said it expected to turn in an improved performance this year compared to 2001 after its Australian subsidiary APN said it was on track to meet profit forecasts for the year.
APN News & Media , which is 44 per cent owned by the Irish group, issued a trading statement overnight in which it said that broker forecasts of a net profit of 84.7 million Australian dollars (€47.3 million) this year were achievable and could be exceeded.
"Based on APN's guidance for the year-end and a continuing improvement in worldwide advertising, Independent News & Media expects to show an improvement on 2001," said executive chairman Sir Anthony O'Reilly. said.
Although market forecasts for APN have already been pared back by about 8.5 per cent from Aus$92.5 million in August, brokers said the update was good news, as there had been concerns that the Australian operations might disappoint.
Goodbody said APN's statement was broadly in line with its forecasts for Independent, which are based on APN achieving net income of Aus$85.5 million.
In the trading statement, APN, which represents about half of Independent News and Media's business, said its publishing divisions continued to perform well.
But it acknowledged that its radio and outdoor businesses remained disappointing.
It said the New Zealand Herald performed comfortably ahead of last year in the third quarter, while its regional newspapers in Australia and New Zealand had improved advertising bookings for September and October.
But results in its radio division continued to be below budget expectations, while its outdoor division also continued to disappoint.
Despite this, APN said trading in the third quarter had been "satisfactory", leaving it positioned to match or beat the consensus forecast provided current trading conditions continued for the balance of the year.
APN also said that it would divide the company's operations into five separate divisions under a new management structure to oversee the next stage of its development.
The divisions include the New Zealand Herald; regional newspapers; broadcasting; outdoor and print and specialist magazines.
APN's recently-appointed chief executive, Mr Brendan Hopkins, and chief financial officer, Mr Greg Dyer, along with the five divisional chief executives, will form an executive committee to run the company.
