INM warns of difficult trading after revealing €152.3m first-half total loss

Independent News & Media has reported a total loss of €152.3m for the first six months of 2012 and has warned that early trading in the second half of the year points to a continuation of the difficult conditions seen in the first half.

Yesterday’s interim results — the loss was up from a figure of €17.7m for the first half of last year — also showed a 4.4% year-on-year fall in group revenue to €272.2m, a 22.6% drop in first-half EBITDA to €39.1m and a 26.4% fall in operating profit, before exceptional items, to €25.4m. Net exceptional charges — relating to non-cash impairments on properties, charges relating to its Australian operations and a €7.2m restructuring charge relating to redundancies — amounted to €163.7m and were up from €40.1m for the same period last year.

“The first half of 2012 offered no respite from the difficult trading conditions in which INM operates,” said INM’s chief executive Vincent Crowley, adding that weak economic conditions — in Ireland and South Africa — continued to play a part. He pointed out, however, that operating costs fell by €3.3m and net debt was further reduced.

Before exceptional items, INM made a pre-tax profit for the period of €13.9m; down from €23.7m on a year-on-year basis. But post-exceptionals, the group posted a pre-tax loss for the first half of this year of €149.9m; against an interim one of €16.4m last year.

In terms of regional performance, INM’s island of Ireland operations — which includes the Irish Independent, the Sunday Independent, the Sunday World and the Belfast Telegraph — generated revenues of €178.8m, down by 2.4% on the corresponding period last year, while the South African publishing business, which is expected to be sold by the end of the year, saw revenues fall by nearly 8% on a year-on-year basis to €93.4m. APN, the Australian media group in which INM owns a 29.5% stake, recently reported a rise in first half net losses from €22.8m to €75.9m.

Group-wide advertising revenue for the first half fell by 4.1%, year-on-year to €106.5m (down nearly 10% in Ireland) and Mr Crowley said that “forecasting operational performance for the latter half of 2012 is challenging, as visibility is very short-term”.

Addressing questions about Denis O’Brien, Mr Crowley also said that management has no current intention of taking the group private and de-listing from Iseq.