Profits at IN&M's Australian arm rise 16%

Independent News & Media's 41 per cent owned Australian associate said profit climbed 16 per cent last year after circulation of its regional newspapers increased and outdoor advertising drew in more revenue.

APN, the largest operator of regional newspapers, radio broadcasting and outdoor advertising in Australasia, said yesterday that net income rose to A$149.7 million (€92.8 million) in 2005 from A$129.4 million a year earlier. Earnings were reported under International Financial Reporting Standards for the first time.

While the company said it was too early to predict a fifth straight year of double-digit profit growth, chief executive Brendan Hopkins said earnings will rise by at least 5 per cent this year. The early part of 2006 is trading "in line" with APN's estimates, Mr. Hopkins said.

"Consensus forecasts for 2006 already broadly reflect that trend," said Neil Clifford, an analyst at Goodbody Stockbrokers who has an "add" recommendation on the stock.

"The slowdown in Australasia means that Ireland and South Africa will be the main drivers of Independent News and Media's earnings growth during 2006," he said

APN's regional newspaper division, which includes 23 regional daily newspapers and more than 100 non-daily papers in Australia and New Zealand, posted a 12 per cent gain in earnings before interest and taxes last year.

Earnings at APN's outdoor advertising business climbed 17 per cent, while the radio division reported a 15 per cent earnings increase.

Total EBIT (earnings before interest and tax) at the company rose 9 per cent.

The New Zealand national publishing division lifted full-year earnings by 7 per cent to A$110.1 million, helped by price increases in September for the New Zealand Herald and the Herald on Sunday.

The New Zealand Herald is the country's biggest metropolitan daily with a weekly circulation of more than 1 million.

The Herald on Sunday has become Auckland's best-read Sunday newspaper after being introduced just 18 months ago.