SHARES IN APN, the Australasian media group part-owned by Independent News Media (INM), fell to a record low yesterday as it posted wider losses and wrote down the value of its New Zealand publications by Aus $485 million (€410 million).
Net losses of Aus $319.4 million at the group in the six months to the end of June compares to a Aus $98.3 million dollar loss in the same period a year earlier, while revenues fell 6 per cent to Aus $477 million, the Sydney-based company said yesterday.
“It has been a tough first half for our publishing businesses, particularly in New Zealand,” said APN chief executive Brett Chenoweth. The writedowns, which are larger than the company’s market value of Aus $273 million, follow similar moves by its competitors News Corp and Fairfax.
APN has now “accelerated” a cost reduction plan. The New Zealand Herald will switch from broadsheet to “compact” format next month and is cutting 100 jobs this year, having eliminated 400 jobs in the past three years.
APN’s radio holdings in Australia enjoyed better fortunes, with revenue climbing 8 per cent in the half-year period, while earnings from outdoor advertising business Adshel jumped 42 per cent.
However, APN’s publishing businesses are suffering in a tough media climate that has seen advertisers desert newspapers at a faster pace than other mediums.
Advertising spending in Australia fell 7 per cent in July from a year earlier, according to media research company Standard Media Index, with newspaper spending down 30 per cent.
APN shares fell 11 per cent to 42 Australian cents at the close of trade, the lowest since it began trading in 1992 and the biggest single-day decline in a year.
INM’s share price also slipped in Dublin yesterday, declining 1 cent to 18 cent. – (Additional reporting: Bloomberg)
