Independent News & Media Sees Profits Fall 17%
Independent News & Media (INM) this morning reported that its pre-tax profits fell by 17.2% to E56.6 million during the six months to 30 June. The group, which publishes the Independent national newspaper, says that the drop is due to adverse currency movements, exceptional start-up costs, investment in a new Irish print facility and costs arising from the acquisition of Belfast Telegraph Newspapers.
Group-wide newspaper advertising revenues increased by 5.6% in contrast to major declines reported by most media companies worldwide, claims INM. Group circulation revenues were up on a like-for-like basis. Operating profit rose by 13.5% to a record E109.3 million and turnover was up 4.2% to E656 million.
The group’s Australian newspaper division, APN, has reported a 3% decline in interim revenues and a 6% decline in earnings. APN says that its regional papers continue to experience challenging conditions.
Chairman Anthony O’Reilly said that he believes the company is well-positioned to for continued growth and that despite uncertainty in the global markets the group expects to report improved results for the full year.
At 10:00am today shares in INM were down 2½p at 130½p.
ABN Amro: Hold
