APN, a subsidiary of Independent News & Media, has indicated that trading for the first quarter of 2003 is ahead of the same period last year and profits for the year should exceed those of 2002.

Addressing the company's annual general meeting, chairman Mr James Parkinson said that if current market conditions continued, APN was confident it would exceed the profits posted in 2002 of 136 million Australian dollars before tax.

Independent News & Media is the largest shareholder in APN, with a 45 per cent stake.

However, Mr Parkinson warned that the impact from the war in Iraq and SARS was still uncertain. "The first quarter of 2003 has continued to produce satisfactory results. The diverse economies in which we operate continue to show good growth and, in particular, our newspaper operations are performing well in Australia and New Zealand."

In relation to divisional performance, chief executive Mr Brendan Hopkins said the company's newspaper assets in Australia and New Zealand continued to perform ahead of the same period last year.

In relation to radio, recent surveys gave the company's stations a greater share of the market, particularly in the key demographic area of 25 to 54.

The Australian Broadcasting Authority has announced that further radio licences may be offered.

APN said it welcomed the opportunity to participate in any new licensing rounds.