INM reports profit growth

Independent News and Media has today reported a 29.2% increase in operating profit for the six months ended 30 June to €94.6m.

Group revenue of €656.5m was up 7.8% for the same period.

Stripping out the impact of favourable foreign exchange rate movements, exceptional items and disposals, to compare the like-for-like underlying trend, revenues grew 1% and operating profit increased by 12.7%.

Total advertising for the group was 1% up on last year, led by an initial recovery in Australasia and an improving trend across the other regions. Circulation revenues were up 2.7% on last year.

There was a net exceptional gain of €9.7m in H1 2010, principally representing the gain from the sale of 7.8% of the issued share capital of Jagran Prakashan Limited in March.

These gains were partly offset by asset impairments and costs associated with the disposal of The Independent and Independent on Sunday. The disposal of these UK titles was completed in April 2010.

Net debt was reduced by €65.9m in constant currency terms in the period.

“After an extremely difficult 2009, we’ve had a very good start to 2010, achieving a number of important milestones in revenue growth, market share, profitability and further deleveraging.,” said CEO Gavin O’Reilly.

“As there have been a number of changes to our asset base, it is most pleasing to note an underlying 1% increase in advertising and an improving trendline occurring in all of our markets, albeit at different speeds.

“All of our segments have contributed positively to our strong operating performance in the first half, with substantial operating leverage delivering double-digit year-on-year improvements in operating profit.

“That growth has delivered further reductions in Net Debt, which has reduced by €360m since June 2009 as part of our continuing focus on deleveraging.

“Positive year-on-year advertising trends, as well as solid performances in circulation and other revenues, have continued to improve through the opening months of the second half. Profits for H2 to date continue to be well ahead of last year.

“This gives us confidence for the balance of 2010, and assuming a continuation of these positives, we are targeting an improved operating performance for the year, in line with current market expectations.”