IN&M revenue ahead of last year

Advertising revenue and newspaper circulation at Independent News & Media are ahead of last year, the group's chief executive told shareholders yesterday.

In a statement to the media group's annual general meeting (agm), chief executive, Sir Anthony O'Reilly, said trading had continued this year in a positive fashion "with both circulation and advertising revenues comfortably ahead of last year".

He added that revenues remained strong in the second quarter, and said that the board was comfortable that underlying profits would improve in 2005.

The group is due to issue a detailed trading statement at the end of the month. Independent News & Media also sealed the €100 million sale of mobile phone services group, iTouch.

It has sold the company, which sells ringtones, games and other services to mobile phone users, to Japanese player For-Side.com.

The group's statement said it expected to receive the €100 million by June 24th. After the meeting, chief operating officer, Gavin O'Reilly, said that the proceeds of the sale would be used for general corporate purposes, including paying down the group's debt, which stands at over €1 billion.

During the meeting, former Sunday Independent news editor, Kevin O'Connor, told the board that senior management had failed to honour a commitment to give yearly index-linked increases to between 30 and 40 journalists who retired before 2001.

The group does not enjoy increases of 2 per cent and 3 per cent given to other journalists who retired after 2001, or who worked for its provincial titles.

Mr O'Connor said that one of the group had been forced to continue working for other newspapers to boost his income, while another pensioner was surviving on just €40 a week.

Vincent Crowley, chief executive of Independent News & Media, said that there was a meeting scheduled with the pensioners' representatives for June 27th.

One of the group that arrived to raise the issue told The Irish Times that they had already been told by another Independent News & Media executive that their problem was at "the bottom of the list of priorities".

However, Mr O'Reilly said afterwards that this was not the case. He maintained that it was being looked at in the overall context of the group's pension deficit, which was €86.7 million at the end of 2004.

Mr O'Reilly said it was currently working with the Irish Pensions Board in an effort to find a solution to the shortfall.