Independent Newspapers' Australian associate, APN News & Media, has announced an 11 per cent increase in 1998 pre-tax profits to Aus$57.7 million (€32.8 million) despite the economic slowdown in Asia.

However, reflecting the weakness of the Australian dollar, profits in Irish pound terms rose by less than 1 per cent to £25.6 million (€32.5 million).

All the company's businesses, including regional newspapers, radio and outdoor advertising, performed well, chief executive Mr Cameron O'Reilly said.

Operating profit in the newspaper division rose by 6 per cent with solid growth in both advertising and circulation, broadcasting posted a 15 per cent increase in operating profits, helped by market share gains, while outdoor advertising reported a 10 per cent rise in profits.

Mr O'Reilly said the Australian economy was proving quite resilient in the face of the Asian financial crisis and the first quarter performance at APN had been strong.

"If this is the worst it's going to get, it's not very bad at all," he said.

The company expects to be able to continue to deliver strong growth in its existing business.