Independent News & Media chief executive Sir Anthony O'Reilly will receive a final dividend of €16.63 million from the organisation on the back of a 10.4 per cent rise in profits before tax and exceptionals to €265.4 million in 2006.

With South Africa the star performer in 2006, the publisher of the Irish Independent increased its final dividend by 18.6 per cent to 8.3 cent per share.

This brings its full-year dividend 15.8 per cent higher to 12.45 cent per share. Sir Anthony. who exercised options on 1.04 million shares yesterday, benefits to the tune of €24.82 million. Businessman Denis O'Brien, who owns 5.06 per cent of the group, will receive €4.81 million.

"The higher than expected final dividend in 2006 is a reflection of managment's confidence in the future of its businesses," said NCB analyst Tricia McEvoy.

Pretax profits declined by 8.2 per cent to €250.1 million when exceptional items such as the €62.7 million gain in 2005 on the sale of iTouch were included in year-on-year figures. Diluted earnings per share before exceptionals rose 11.6 per cent to 17.43 cent; earnings per share declined 22.8 per cent to 15.67 cent.

Independent remains committed to "double-digit earnings growth" in this year, "given a continuation of current trading conditions". The company expects to realise more than €350 million from a buyout of APN, its 40 per cent-owned Australian subsidiary, but says it does not await that money to execute any particular deal.

Chief operating officer Gavin O'Reilly said the group might use the funds to increase its presence in India or Indonesia but declined to comment on the likelihood of a special dividend payment.

Group revenues of €1.64 billion were 1.5 per cent higher, but when the impact of currency fluctuations are excluded they are higher by 3.1 per cent. APN contributed €741.6 million in revenue, down 4.7 per cent in real terms, and operating profits at the Australian unit rose 1.1 per cent to €181.1 million.

"On a like-for-like basis, revenue actually increased by 2 per cent, with the advertising market of Queensland again recording good growth, partially offset by the markets of Auckland, Sydney and Melbourne, which were flat to negative."

Revenues in Ireland rose 0.7 per cent to €404.7 million and operating profits rose 4.2 per cent to €94.4 million. Advertising sales rose 9.3 per cent, with a "high single-digit increase" forecast this year, and circulation revenues rose 2.6 per cent.

The group wants an initial 34 redundancies from its Irish unit, where parts of the production process are being outsourced.

Vincent Crowley, head of the unit, said there was a higher than expected level of interest in the redundancy package. "Overall, we'd be looking across our entire group for 2007, we'd be looking at the order of about €20 million in total restructuring charges and you would expect to at least have a two-year payback on that," Gavin O'Reilly said.

Revenue in South Africa grew 18.3 per cent to €262.8 million and operating profits in that market rose 32.1 per cent to €55.2 per cent. The group expects "high single-digit to low double-digit" advertising revenue growth in that market for 2007.

The UK unit, which includes the Belfast Telegraph, saw operating profits fall by 5.3 per cent to €14.3 million in spite of an 8.4 per cent increase in revenues to €226.6 million. The decline in profits was attributed to weak advertising in Northern Ireland, which recovered in the second half. The Independent titles in London continue to lose money, with losses of some €9.5 million in 2006 projected to decline to some €7.5 million for 2007.