AUSTRALIAN Provincial Newspapers (APN) has posted net profits of Aus$11.6 million (£5.7 million) for the first six months of this year. It represents a 12 per cent increase on last year's figures for the company, which is part owned by Independent Newspapers.

Operating profit increased by 24 per cent to Aus$18.1 million. APN's chairman, Mr Liam Healy, described the results as satisfactory and said they had been achieved despite continuing difficult trading conditions in many of its markets.

He said publishing sales revenue increased by 5 per cent to Aus$100 million, but regional newspapers continued to be affected by depressed local and classified advertising volumes due to the weak overall economy.

Mr Healy said newsprint costs had increased by 18 per cent this year compared to the same period last year. However, prices had been reduced to levels below those prevailing in the second half of 1995, since the beginning of July.

APN increased its radio interests with the successful bid to purchase Radio New Zealand Commercial through a consortium in which APN has a one third interest. The deal was settled on July 10th for NZ$29 million following the resolution "of an outstanding Maori language claim".

Earlier this month, APN bought two Adelaide radio stations - SAD FM and 5DN AM. The total cost was Aus$29 million, half of which was paid by APN.

Independent Newspapers owns 25 per cent of APN and the O'Reilly family trust owns more than 20 per cent of the company.