Revenue at APN rises

Revenue at Australian media group APN News and Media rose to almost A$1.1 billion in 2010, a growth of 2.8 per cent year on year.

The group, in which Independent News and Media (INM) has a 31.6 stake currently valued at about €250 million, said earnings before interest and tax were 8.7 per cent higher at A$205.4 million, while net profit after tax, but before exceptional items, increased 9.5 per cent to A$103.1 million.

INM is set to get its final dividend in March, when it will be paid 7 cents per share, leading to a payment of A$13.4 million. Combined with the interim dividend of 5 cents per share, the annual dividend will total 12 cents per share, or A$23 million in the case of INM.

As of the end of 2010, the company’s holding in APN is being treated as an associate instead of a subsidiary and will no longer be consolidated into INM accounts. The move came after a number of changes to the board reduced INM’s influence.

Net debt at APN fell to A$657 million from A$750 million over the 12 months.

Chief executive Brett Chenoweth said the result marks a return to growth for APN.

"APN remains a strong cash generator and our core businesses provide a robust platform for the next stage of growth as the economy strengthens and the advertising up cycle continues,” he said.

Looking ahead to 2011, the company said its Australian publishing business had been affected by the Queensland floods, with earnings before interest and tax falling by A$3 million last month. Retail and real estate advertising, and the tourism market were all badly hit by the disaster. However, the group noted that revenue had recovered in recent weeks, and publishing in New Zealand is mainly in line with the year before, although retail advertising was weaker, showing 11 per cent down in January.

Analysts described the results as "solid", and noted the outlook for the fiscal year 2011 was encouraging.