The Independent’s transition from broadsheet to compact tabloid has helped push post-tax profits at its parent group, Independent News & Media, up over 42% to â‚Ź68.1 million during the first six months of this year.
From January to June 2003, operating profit have grown by over 25% to â‚Ź129 million, driven by record results in its UK, Irish and Australian operations, which were up 42%, 7.5% and 19.5% respectively.
Advertising and circulation revenues were up 14% and 10%, spurred by a strong performance in all of the group’s markets, which include; Australia, New Zealand, Ireland, South Africa and the UK. While turnover rose by 14% to â‚Ź736.9 million.
A recovery in the British advertising market helped pushed UK operating profits up 42% to £0.5 million, with the Belfast Telegraph being praised for the success. Meanwhile, the group’s recently relaunched flagship newspaper, The Independent, continues to be a burden, as profits remain in the red.
Like-for-like advertising revenue grew by just under 1%, ‘with the nationals falling behind due to the complex conversion into compact and the timing of attendant rate negotiations with agencies’, said the group.
The statement issued this morning added that, ‘underlying growth has been further bolstered by enviable readership data’, which shows a 31% increase in total readership for The Independent, including a 47% increase in female readership.
In Ireland, turnover also reached record levels during the six month period, growing by 7.5% to â‚Ź189.6 million, driven by the continuing improvement in core advertising and circulation revenue. While overall operating profits grew by 8.5% to â‚Ź40.9 million, ‘reflecting the improved revenue environment and the continued tight focus on costs’, said the statement.
Chairman, Gavin O’Reilly said: “Trading in 2004 has been very positive, with all five markets showing good revenue and profit growth. That positive trading position has continued into the second half, and as such, your board remains confident of further improvements in underlying profitability for 2004.
He added: “A combination of these current buoyant conditions, coupled with the benefits of the ongoing restructuring, leaves the group extremely well placed to deliver a meaningful advance for 2005.”
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