APN reports 14% hike in profits for first half

APN, the Australian newspaper publisher in which Independent News & Media has a 40% stake, said profits in the first half of the year rose 14%.

Pre-tax profits for the six months to end June were €68.1 million on revenues 10% higher at €405 million.

The company said profits were driven higher by a strong circulation and advertising gains at its New Zealand and regional newspaper publishing arms and from its radio division.

The company, which publishes more than 100 newspapers in Australia and New Zealand, said revenues in the publishing division were up 8% in the first half with radio advertising 14% ahead of the same period a year ago.

APN chief executive Brendan Hopkins said that all of the company’s divisions - newspaper publishing, commercial radio and outdoor advertising - had performed strongly.

He added that the outlook for the rest of the year was positive.

“Early results for the second half are as anticipated with underlying growth rates moderating as trading is set against the strong 2004 second half comparisons,” Mr Hopkins added.

Asked whether the company would consider itself more of a predator than a target if Australia’s media ownership laws changed, Mr Hopkins said: “We are a very large company ... we would be looking very actively at what opportunities would be available.”

The company hiked its interim dividend payment for shareholders by 10% to 5.47 cents.

APN owns the New Zealand Herald, The Aucklander, the Herald on Sunday as well as some of New Zealand’s best-read magazines.

The record profit comes as staff at four of APN’s New Zealand daily newspapers are currently involved in industrial action over what they described as a “paltry” 2.8% pay increase.

More than 100 workers walked off the job for 24 hours on Monday as part of a campaign for a 5% pay rise.