INM considers investing in APN

INDEPENDENT News & Media (INM) is considering increasing its stake in Australian media group APN, which it views as being part of its long-term strategy.

INM owns 32.2% of the Sydney-based group, having diluted its stake from 39.9% as part of last year’s financial restructuring project.

Speaking after INM’s annual general meeting in Dublin, chief executive Gavin O’Reilly said no further asset sales are planned.

When specifically asked about APN, which INM looked to sell off in 2008 only to shelve those plans due to the lack of interest, Mr O’Reilly was adamant that the Australian business remained a long-term investment for the Dublin-headquartered group. He said rather than diluting its shareholding any further, INM management’s bias would actually be for upping the stakeholding.

Institutional investors in APN have voiced criticism over INM’s high profile on the Australian board. Mr O’Reilly is chairman of APN as well as head of INM.

Meanwhile, shareholders at the AGM were informed that INM will resume paying dividends “as soon as possible” or “when economic and other circumstances allow”.

Mr O’Reilly said the INM board remains “fully committed” to a resumption of dividend payments to shareholders and suggested that it could happen either next year or by 2012.

After what he referred to as a “tough year” in 2009, he said this year was about “building on positive momentum and further de-risking the balance sheet and operations”.

Regarding the outlook, Mr O’Reilly said the positive trading trends reported in the group’s last trading update in March have continued, with advertising revenue improving marginally.

“Overall, we’re experiencing more stability in our trading performance across each of our regions, though aggregate advertising revenues have yet to show growth on the prior year and advertising conditions remain volatile,” he said.

He said management was targeting an improvement in operating profit for its financial year.