INM unlikely to sell stake in APN group

Independent News & Media is unlikely to sell its stake in leading Australian media group APN despite the Dublin-headquartered group’s cost-cutting needs and the Australian business posting a 224% year-on-year increase in first half pre-tax losses.

The Sydney-headquartered media group — in which INM owns a 29.5% stake — yesterday reported pre-tax losses of A$456.2m (€363m) for the first half of 2012. Revenue for the period was down by 7% year-on-year. If publishing revenues continue to be weak,Ebitda for the year is likely to be down.

In response to speculation that INM might push for a break-up of APN, via the forced sale of some of its assets, CEO Brett Chenoweth said there was “no substance” to such rumours. INM made no comment on the matter.

Regarding APN’s first half results, Mr Chenoweth added: “It has been a tough first half for our publishing businesses, particularly in New Zealand. While it is clearly a difficult result, our newspapers have remained very profitable and relevant, despite difficult advertising markets and structural challenges.”