After-tax profits at Aussie media group set to hit €73.6m

AFTER-TAX profits at APN, the Australian media group 40.5%-owned by Independent News & Media, are set to hit $A120 million (€73.6m) for 2004, up from $A103 in 2003.

APN News & Media chairman James Parkinson said the first quarter of 2004 continued to produce good results.

"The diverse economies in which we operate continue to grow, and in particular our newspaper and radio operations are performing well in both Australia and New Zealand.

"Given a continuation of good market conditions, the company remains confident of achieving the consensus net profit after tax forecast of $A120 million for the current year," he said.

However, despite the strong growth in profits, APN has no plans to grow in the short term through acquisition.

APN chief executive Brendan Hopkins told The Age newspaper in Melbourne there were "no plans" when asked whether the company was on the acquisition hunt this year.

"Our ongoing plans are to keep reinvesting in our business," Mr Hopkins told reporters after the annual general meeting.

"Unlike other media companies who have to buy to grow, we don't we have enough assets and all we're doing is basically launching products into our existing markets. We've got tremendous size and scope to grow our business within our existing divisions and we're very confident we can continue to do that.

"When I think of organic I think of this, I think of in-filling within our existing publishing areas and launching against competitors in our local areas," he said.

Good news for IN&M investors was also divulged at the meeting when it emerged the recent decision of the New Zealand government not to apply changes to the tax treatment of the licensing of intangible assets retrospectively.

Goodbody Stockbrokers' Neil Clifford said: "this is more of a positive outcome for IN&M as, at the time of the W&H disposal to APN, IN&M promised to indemnify APN if there was any changes to the tax treatment of the sale and leaseback of the Wilson and Horton mastheads."

APN chairman James Parkinson said: "we are pleased with proposed changes to the taxation treatment of the licensing of intangible assets."