INM boosted by €10m APN dividend

INDEPENDENT News & Media’s cash generation efforts have been boosted by a larger-than-expected full-year dividend being paid to it by its Australian subsidiary, APN News & Media.

APN — in which INM owns a 31.6% stake — yesterday reported a 3% increase, to Aus$1.05 billion (€775m), in full-year revenue for 2010. EBITDA increased by 6% to Aus$244.3m and net after-tax profit rose by 9% to Aus$103.1m. Earnings per share also showed 1.2% growth, to 17.2c.

The Sydney-headquartered group — whose operations span the Oceanic region — declared a second-half dividend per share of 7c, bringing the total annual dividend to 12c. The dividend payable to INM amounts to Aus$13.4m (roughly €9.9m). INM’s stake in the Australian group now amounts to €250m in value.

Regarding the dividend, Davy Stockbrokers said: “This will further strengthen INM’s cash generation, allowing for further debt reduction.”

NCB Stockbrokers echoed those sentiments — ahead of INM’s own set of full-year results on March 22: “APN’s results are positive for INM, especially the higher than expected dividend.”

Meanwhile, APN’s new chief executive, Brett Chenoweth, heralded the group’s financial results as a return to growth and noted that, while the region’s advertising climate remains “soft”, APN’s outdoor media division showed a strong rebound; with the group as a whole remaining a strong cash generator.

Mr Chenoweth said: “It’s an exciting time to be a media company. APN is well-positioned to take advantage of the myriad of opportunities and we’re ready for the challenge.”