INM Profits Rise 8%, Confident Outlook For 2003
Independent News & Media (INM) has this morning posted a positive set of financial results for 2002, with like for like pre-tax profits rising by 8% to €129.0 million.
UK operations The UK’s advertising market continues to be tough, but the group says it is outperforming the majority of its competitors.
The UK division saw a 6.1% decline in revenues, but managed a 20.1% rise in operating profits due to the implementation of significant cost savings measures. “All divisions are now extremely well placed to benefit from even the most modest uplift in the advertising market,” the group says.
National advertising expenditure continues to be very weak in the UK market, particularly in the area of recruitment. However, INM says that its 8% reduction in advertising revenue “stands in stark contrast to the double-digit declines seen in competitor titles.”
INM also today announced plans to sell its UK regional newspaper publishing business to Newsquest for £60.0 million (see Independent News Sells UK Regional Papers To Newsquest).
Outlook The group’s revenues and operating profit for Q1 2003 have continued the positive trend seen in the last quarter of 2002. INM says it is trading in line with, or above market expectation, and is ahead of Q1 2002.
The company’s outlook is positive, despite the current volatile conditions. “The combination of improving sentiment, a fortified balance sheet, our robust brands and a proven operational track record, lead us to believe that the group will continue to perform well,” it says.
Shares in Independent News & Media were down by 4.9% at 78p by midday today.
