APN makes dividend payments amid talk of an upturn in media business

AUSTRALIAN media group, APN, in which Independent News & Media (INM) has a 32.2% stake, has resumed dividend payments to shareholders and is talking of an upturn in business conditions.

Those positive comments come even though the company has reported that after-tax profits last year fell by 34%.

The Sydney-based group – which has newspaper publishing, outdoor advertising and radio interests across Australia and New Zealand – reported net after-tax profits of Aus$94.2 million (€62.6m) for 2009, down from Aus$143.1m in 2008. Earnings per share fell by 40% to 17c, while underlying group revenue shrunk by 14% to just over Aus$1.03 billion. A resumption of a dividend payment saw a payout of 4c per share.

APN chief executive Brendan Hopkins said the results were in line with previous expectations and guidance and the year had also seen the group reduce its net debt by Aus$150m and reduce its overall costs by Aus$78m.

He added that an improvement in trading over the fourth quarter of the year had progressed into the early weeks of the current year, providing confidence that 2010 “will be a better year”.

“The media industry experienced challenging conditions throughout 2009 and APN’s markets weren’t immune from the global financial crisis. However, through a combination of effective cost management and targeted sales campaigns, the company was able to mitigate its full effects,” said Mr Hopkins.

He added: “The final quarter of 2009 gave some indication that business is returning to pre-financial crisis patterns. The 2010 year has started more positively.”