INM grows revenues for first time in 8 years

Group revenues rose by 1.1 per cent year-on-year in the ten months to October 30th, Independent News & Media said on Tuesday, the first time the media group has posted growth in eight years. However circulation revenues declined by 3.2 per cent, and publishing advertising revenue also fell.

“INM continues to perform well in 2015 and we anticipate a full year performance in line with expectations,” the group said in an interim statement, adding that growth in profit before tax is also “ in line with expectations”.

In a note, Davy Stockbrokers said it was an “encouraging trading update” from the media group, and is forecasting earnings ( EBIT) of € 37.5 million in 2015 and € 39.5 million in 2016, a 3 per cent and 4.5 per cent upgrade respectively.

Total group revenue growth was partially delivered through new distribution contracts through its Newspread division, including The Irish Times, while INM pointed to a "continuation of the positive performance in total advertising revenues, reflective of improved market conditions".

The media group reported an increase in total advertising revenue of 3.7 per cent. Digital advertising revenue grew by 43.6 per cent, offsetting a 1.2 per cent decline in publishing advertising revenue, although some titles, including property and magazines, recorded improved year-on-year revenues.

While circulation revenues fell, down by 3.2 per cent in the ten month period, this is an improvement on the 4 per cent decrease reported in the first six months of the year. INM said an “investment in product and increased retail activity in Q3”, was behind this improved performance.

The group’s deals site, GrabOne, is expected to cease trading by year-end.