Independent news earnings to rise

INDEPENDENT News & Media is expecting earnings this year to rise by at least 10%.

In a trading update yesterday, IN&M said it is expecting group revenues in the six months to end June to be 3% ahead of last year.

The company said advertising revenues for the period are running around 3% higher than at the interim stage in 2005 and circulation revenues would be up 3.5%.

Cost growth, despite higher newsprint prices, will be held in line following the recent job cuts from its various operations and from a lower interest charge.

It said it continues to enjoy revenue growth across its operations in Ireland, Australia, New Zealand, South Africa and Britain, reflecting cover price rises and strong advertising growth.

It added that online advertising revenues, although modest in the context of the size of the company, showed double-digit a growth

So far this year, the company has made two internet related acquisitions: a buy-out of the Northern property website PropertyNews.com; and a 20% stake in online gaming firm Getminted.

“Our multi-media, multi-lingual and multi-market strategy for growth, combined with our low cost ethos, gives us confidence in our ability to deliver another year of superior earnings growth,” chief executive Tony O’Reilly said.

“Early results for 2006 are fully in line with expectations and we look forward to another successful year of double-digit earnings growth.”

Shares in Independent News & Media fell by nearly 2% yesterday, despite the prospects of another increase in earnings.