Independent News and Media's Australian subsidiary, APN, raised its full-year outlook today.
Increased newspaper advertising and sales drove first-half net profit up 25 per cent, boosting the stock to its best level in almost four years.
The publisher of more than 100 newspapers in Australasia including the New Zealand Heraldsaid earnings before interest and tax (EBIT) saw strong double-digit growth during the first seven weeks of the second half and tipped full-year profit growth of more than 16 per cent.
APN said its half-year net profit rose to 56 million Australian dollars ($40.3 million) from 44.7 million Australian dollars a year earlier.
It now expected to better its previous forecast for full-year net profit of 120 million Australian dollars, up from 103.5 million Australian dollars for 2003.
APN, which publishes 24 daily and 90 other newspapers in Australasia, has boosted its earnings since its purchase of New Zealand's biggest newspaper publisher, Wilson & Horton, three years ago.
The firm said last month it would spend several million dollars to set up a new Sunday newspaper in New Zealand.
APN said first-half earnings for its publishing division rose 19 per cent to A$91.3 million on stronger advertising at both its regional newspapers and its New Zealand division.
Although newspaper publishing makes up around 70 per cent of APN earnings, the firm also ranks as the largest radio broadcaster in Australasia, with interests in 12 Australian city radio stations and over 90 in New Zealand.