APN downgrades its full-year profit forecast

CURRENCY and advertising market weaknesses have led Australian media group APN to downgrade its full-year profit forecasts.

The Sydney-headquartered group — which is 31% owned by Independent News & Media (INM) — shifted into loss-making mode in the first half of this year; interim results published in August showing a A$131.6m (€97m) loss (as opposed to a first-half 2010 profit of A$62.5m/e42.1m).

Yesterday, the group issued a brief trading update, saying that its projected full-year net after-tax profit for 2011 of between A$75m and A$77m will be “slightly below current market consensus”.

While it said that trading in the second half of the year has been “significantly better” than the first half, ongoing weaknesses in advertising markets and the New Zealand dollar have harmed performance.

Group earnings before interest and tax, for the full year, are likely to come in at between A$171m and A$173m.

Commenting ahead of APN’s investor day, yesterday, group chief executive, Brett Chenoweth, said: “Whilst our markets have been tougher than we would have liked this half, we have made material progress in repositioning APN and remain focused on managing the levers that are within our control.”