Profit leap no effect on IN&M

THE 40% growth in net profits at Independent News & Media’s 40% owned APN News and Media company had practically no impact on the share price of the owner of the Irish Independent yesterday.

Despite the massive increase in profits at APN’s businesses in Australia and New Zealand, shares in IN&M made a small gain in early trade.

This was eroded by close of business to leave the shares almost unchanged at €2.34, down 1 cent.

Following the results, APN’s shares dipped 9c to AU$4.93 (€2.96), despite market analysts applauding the result.

The trans-Tasman group experienced double-digit earnings growth across its four media businesses that pushed annual net profit at APN News & Media 26% higher to AU$130.2 million (€78.12m). Turnover for the year to the end of December rose to AU$1.26bn (€757m) from AU$1.12bn (€671m) the previous year.

APN chief executive Brendan Hopkins described the results as “very satisfactory” and said the year had been dominated by successful new product initiatives.

The anticipated liberalisation of the Australia media market has prompted much speculation on potential consolidation within the industry and talk of takeovers.

Mr Hopkins told an Australian newspaper: “We don’t spend a lot of time thinking up grand acquisition strategies. We believe we have a great capacity to grow this company organically and that remains our core focus.”

Mr Hopkins also raised the prospect of combining the editorial teams of its four main New Zealand newspaper titles, which were combined into a national publishing business last May.