Independent News & Media Report Rise In Operating Profit For 2004

According to the company’s preliminary results for 2004 profit before tax rose by an impressive 55% to €189.1 million, compared to €122.0 million in 2003, while turnover continued the upwards trend experiencing 14.2% growth to €1,557.4, up from €1,363.4 million the previous year. Group circulation rose by 7.7% for 2004, a drop of 2.3 percentage points from the predicted 10% (see Independent Prepares To Close Book On Successful 2004).

The group’s UK sector recorded revenue of €201.9 million, an 8.7% increase on continuing operations, reflecting a good performance from The Belfast Telegraph and benefiting from the additional circulation revenues provided by The Independent.

The initial success of the launch of The Independent in compact format resulted in year on year growth of over 23% in 2004. This strong performance has continued into 2005, with February’s sales producing the seventeenth consecutive month of year on year growth in both UK newstrade and headline ABC sales, with a circulation figure of 263,595.

The first readership figures following the The Independent’s conversion to compact reveal a 31% increase in total readership for the newspaper, including a 47% increase in female readership.

Commenting on the results, Sir Anthony O’Reilly said: “Following record results in 2004, trading in 2005 has continued the same positive trend with all operations showing strong revenue and profit growth in some of the world’s fastest growing economies. Active cost management remains a central focus, and the group believes that the executed cost savings from the restructuring program will be fully achieved during 2005 and into 2006.”

He continued: “This very buoyant revenue profile has carried on through the first quarter, and with a continuation of these favourable conditions, the Board is confident of a further meaningful improvement in underlying profit for 2005.”