Advertising and circulation up, says INM

Media group Independent News & Media (INM) has said it has experienced "sustainable revenue growth" in each of its five primary markets so far this year.

Media group Independent News & Media (INM) has said it has experienced "sustainable revenue growth" in each of its five primary markets (Australia, Ireland, New Zealand, South Africa and the UK) so far this year.

The positive trading statement means INM is on course to report year-on-year volume and rate growth in both advertising and circulation revenues. The group's 2005 interim results announcement is scheduled for release on September 14.

In a trading statement today, the group said advertising revenues are expected to show a high single-digit increase in constant currency terms, in line with current market expectations. The group added that forward bookings remain positive in all five markets.

In circulation terms, a low single-digit increase in constant currency terms is expected, buoyed in part by the group's decision to launch a tabloid version in Ireland of the Irish Independent.

In strategic news for the group, it announced in May that it had received formal, statutory Indian Government approval for the acquisition of 26% of the leading Indian newspaper publisher, Jagran Prakashan Private Ltd ('JPPL'). JPPL publishes the Hindi-language newspaper Dainik Jagran, India's largest read daily newspaper (read by over 21.2 million people, as per the latest NRS survey, June 2005).

On June 8 this year, the group concluded its disposal of its shareholding in iTouch plc to For.side.com Co. Ltd. of Japan for €100m. Full cash proceeds from this disposal have already been received, with the consideration received being used for general corporate purposes.

On June 16, Independent entered into a 15-year contract print agreement with News International (the main UK subsidiary of News Corporation) to print The Sun and the News of the World from the Group's major new printing facility in Belfast. The new agreement starts in 2007, with the existing print arrangements remaining in place until then.

Independent's chief executive, Anthony O'Reilly said: "As we emphasised at our AGM on June 8, Independent's compelling mix of strong franchises and leading market positions in diversified and growing markets will deliver a strong first half financial performance. The group remains happy with current trading. Good revenue conditions prevail and costs remain well-managed.

"Assuming a continuation of these favourable trends, the Board remains confident of, and expects, a meaningful improvement in underlying profit for the full year of 2005, in line with current market expectations."