Wilson & Horton, the New Zealand newspaper group which is 85.6 per cent owned by Independent Newspapers, has increased its pre-tax profit by 17.9 per cent from NZ$27.42 million (£12.3 million) to NZ$32.3 million in the six months ended June 30th, 1997.
The group benefited from lower interest costs following the reduction of debt. The growth in profit before interest was a lower 7.1 per cent to NZ$41.7 million. Group turnover rose marginally by 1.8 per cent from NZ$212.6 million to NZ$216.5 million.
The low growth in sales is attributed to the "continuing lack of confidence by businesses and consumers". Nevertheless, Wilson & Horton describes the results as "satisfactory" with the higher earnings coming not only from the New Zealand Herald but from improved performances from some of the company's other businesses. The company noted the benefits from the emphasis on debt reduction.
Since its relaunch a year ago, the New Zealand Herald added new sections such as Business Herald, Key Appointments, Viva and the seven-day TV listings guide. While the Business Herald "is now gaining growing advertising support, the other sections have as yet to attract the strong base that a return of confidence in the economy will bring", the interim statement said.
The group's rural newspapers are "largely ahead" despite being hit a "generally lack lustre economy". In the commercial printing company, Security Plastics had to contend with a somewhat slower introduction of the new "electronic purse" but an improvement is expected in the second half. The group's magazines had an "excellent" half year. Shortland Publications "continues to trade well".
The radio network operating in a difficult advertising environment installed new technology, the benefits of which are expected to come through later this year.
Group earnings per share rose from 18.49p to 21.65p. An interim dividend of 17 cents per share has been declared. Shareholders' funds amount to NZ$896.1 million. Intangible assets amounting to NZ$807 million account for 71.6 per cent of the group's fixed assets.
On the future, the group says with a strong cost containment policy in operation, it should move strongly ahead as confidence returns to the marketplace.
