Independent profit down but hopeful for 2002

Independent News & Media posted a sharp drop in pre tax profit after a difficult 2001, but said today it was hopeful the …

Independent News & Media posted a sharp drop in pre tax profit after a difficult 2001, but said today it was hopeful the current year would yield better results.

The media group reported 2001 profits of €61.8 million, down from €155.3 million in the previous year and undershooting a consensus market forecast of €111 million.

Turnover in Ireland grew 10.4 per cent, yielding an 11 per cent rise in operating profits.

INM said the drop in profit was due to more than €90 million in exceptional charges relating to start-up costs for new media and cable investments.

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Despite a hesitant global advertising market, the group - which has publishing and new media interests in Ireland, Britain, Australia, New Zealand and South Africa - had outperformed its peer group and seen solid performances in each of its operating bases, it said in a statement.

Independent shares moved 1 per cent higher in Dublin to €2.10, although volume was minimal.

Circulation revenue was up across all divisions and the group was well-positioned for any improvement in advertising markets, it said, adding many commentators expected this to occur in the second half of the year.

Operating profit before exceptionals was €220 million compared with €224 million previously.

Turnover was unchanged at €1.3 billion, with fully diluted earnings per share - before exceptionals and amortisation - down to 12.5 cents from 15.92 cents.

Britain was the best-performing region, with overall profits up 41 per cent to £10.6 million sterling and revenues 21 per cent ahead at £155 million.

Australian and South African markets remained difficult, while operating profit in New Zealand grew by 11 per cent, boosted by the impact of the Americas Cup yacht race.