Profits fall at APN News & Media

AUSTRALIAN newspaper publishing and radio ownership group APN News & Media — in which the Dublin-based Independent News & Media (INM) owns just under 40% — has reported worse than expected figures for 2008.

Earlier this month, analysts warned that the group’s profits could fall as much as 5%. Yesterday’s figures however showed a 17% drop to Aus$140 million (e71.3m) for what the company called the most challenging trading conditions it has faced.

Group revenue came in at Aus$1.2bn, down by 7% on the previous year. Earnings before interest, tax, depreciation and amortisation (EBITDA) were also down — by 11% — at Aus$319.5m, while earnings per share fell by 17%. After exceptional items, APN made a net loss of Aus$24m — compared to a profit of Aus$167.4m in 2007.

Commenting on the results, APN chief executive Brendan Hopkins said they were a fair summary.

“The past year produced the most challenging trading conditions that APN has faced as a listed company. Given the uncertainty in the broader marketplace and the economic factors affecting our clients, we believe that net profit after tax of Aus$140m to be a satisfactory result.”

Mr Hopkins added that the second half of the year was “particularly challenging”, with the group’s New Zealand-based businesses particularly feeling the pinch. He said the group is seeing the benefits of its recent restructuring programme and the diversity of its revenue base should aid it in what should be another challenging year in 2009.

INM had planned to reduce its debt by about e800m via the sale of its 39% stake in APN after receiving unsolicited expressions of interest in the asset late last year.

However, INM recently said that it was putting those particular plans on hold due to the weak global credit markets. Instead it is looking at the possibility of selling other non-core assets over the coming months — none of which are expected in Ireland.