Australian media firm APN, in which Independent News & Media (IN&M) has a 32.2 per cent holding, has reported a 50 per cent fall in pre tax profits due to a slump in advertising revenue.
The publisher of more than 100 newspapers in Australia and New Zealand said net income after exceptional items totalled A$33.6 million (€19.5 million) in the six months ended June 30th, compared with A$71.9 million a year earlier, the company said in a statement.
The company had a loss of A$95.9 million in the second half of 2008 after an impairment.
Revenue at APN’s Australian publishing division fell 14 per cent; sales from New Zealand publishing operations, which account for almost a third of the company’s sales, declined 25 per cent.
“It is difficult to look forward with any certainty to the full-year result in an environment where key indicators remain mixed in both Australia and New Zealand,” the Sydney-based company said.
Chief executive Brendan Hopkins said while the group was disappointed with the outcome, given the uncertainty affecting its markets, “we consider the results to be satisfactory”.
Revenue at APN’s outdoor unit, which sells advertising on billboards in five countries including Hong Kong and Indonesia, fell 9 per cent.
Australian radio operations had the smallest drop in sales of the company’s divisions, with sales declining 7 per cent.
Sales at the New Zealand radio unit declined 23 per cent.
The company operates more than 130 radio stations in Australia and New Zealand including the “Classic Hits” network, according to its Web site.
“Trading has stabilized, and for the first time this year, New Zealand publishing earnings and Australian outdoor bookings are ahead of last year,” APN said today, adding that the Australian publishing division isn’t seeing any improvement in trading.
The company raised A$99 million through a share sale in June to repay debt. APN won’t pay an interim dividend, it said today, after paying 10.5 cents per share a year earlier.
The company said its online revenues continued to grow and that nzherald.co.nz was profitable after revenue growth of 16 per cent. “We believe revenues will continue to grow organically for some time as the New Zealand online ad market matures,” the company said.
Independent News & Media, APN’s largest shareholder, tried to sell its holding last year but couldn’t find a buyer to match its valuation.
At 12.05pm shares in INM were unchanged at 25.5 cent.