Independent News and Media profits up 55%

Before-tax profit at Independent News and Media rose 55% to €189.1m in 2004 from €122m in 2003.

In today's preliminary results announcement, the group put the profits surge down to three factors - strong advertising and circulation growth as well as "efficient cost control"

Advertising revenues from continuing operations grew by 18% in the year, from a combination of enhanced yield and higher volumes. Circulation from continuing operations boosted revenues by 7.7%, though that includes the effect of some cover price increases. The release of a compact edition of the Irish Independent also boosted circulation and revenue.

As part of the company's restructuring plan, there were 208 redundancies in the Abbey Street HQ in Dublin in mid-2004. Back office and telesales activities were outsourced to Cork and Armagh respectively.

In 2004 the group secured agreement, subject to government approval, to purchase a 26% shareholding in JPPL, publisher of India's leading newspaper Dainik Jagran.

The company board is proposing to increase the group's final dividend by 16.5% over 2003 to 6c per share, making a total dividend for the year of 9c per share - an increase of 13.9% on 2003.

Group boss Anthony O'Reilly, Chief Executive said: "Following record results in 2004, trading in 2005 has continued the same positive trend with all operations showing strong revenue and profit growth in some of the world's fastest growing economies.

"Active cost management remains a central focus, and the group believes that the expected cost savings from the restructuring program will be fully achieved during 2005 and into 2006."

In Ireland, turnover increased by 8.2% in 2004 to €410.3m, driven by advertising growth and circulation revenues in the publishing operations, together with growth in Newspread, the group's publishing wholesaling division.

Double-digit advertising revenue growth for the year was driven by strong property, retail and government related advertising, the group said today.

The improvement in recruitment revenues noted in the first half was again evident in the second half.

Independent News & Media PLC ('INM') operates primarily in Ireland, the UK, Australia, New Zealand and South Africa. The group publishes more than 175 newspaper and magazine titles with a weekly circulation of 14.3 million copies and operates more than 70 online websites.