INM suffers first half fall in ad revenues

Independent News & Media has suffered a big drop in ad revenues for the six months to the end of June and warned that its profits for the whole year will be at the lower end of forecasts.

The owner of the Independent and Independent on Sunday, which is in the process of securing a financial restructuring deal with banks and bondholders, made a pre-tax loss of €48.5 million for the first half of the year. Excluding exceptional items, INM’s pre-tax profit was €38.3 million, down from €115.6 million last year.

INM said that it expects full-year operating profit to be at the lower end of the €180 million to €210 million range which was forecast in June.

The company also said that it has sold its South African outdoor advertising business, INM Outdoor, for around €90 million. It hopes to offload its German price-comparison website Verivox by the end of the year.

The only good news for the company was a 1.3% increase in sales at its outdoor advertising operation.

INM confirmed last Thursday that its creditors and banks had agreed to extend a standstill agreement for the fourth time while it renegotiates its debts.

It now has until 25 September to secure a deal.