Independent News & Media has reported strong growth for 1999, with good performances in its Irish, British and Australian operations being augmented by a recovery in the group's two previous trouble spots, South Africa and New Zealand.
The figures produced few surprises, but analysts welcomed the turnaround in South Africa and New Zealand and said that all of the group's geographical divisions were now either performing strongly or were in a clear recovery phase.
There was, however, little reaction in the market to the results - which, in earnings terms, were in line with expectations - with the shares just five cents firmer on €10.35 (£8.15).
Turnover was 46 per cent higher on €1.17 billion (£921.5 million), while pre-tax profits were up 68 per cent to €142.7 million (€112.4 million). Earnings per share were up 25 per cent to 30.7 cents (24.2p) and shareholders will receive a dividend of 13.33 cents, a rise of 16.7 per cent.
In the Republic, Independent benefited from the continuing surge in advertising revenues and steady circulation, and generated operating profits of €63.3 million on sales of €310.5 million. Negotiations on the relocation of the group's print plant to the new €60 million Citywest complex are continuing.
Chief executive Mr Liam Healy would not comment on these discussions, but it is understood the group intends to operate Citywest with a staff complement of 65, a reduction of 45 on the current numbers in the production area.
Mr Healy said Independent's Unison Internet portal had enlisted 11,500 subscribers since it was launched three weeks ago, while the 50 per cent-owned Princes Holdings cable television operation (part of the Unison project) is investing more than £300 million in developing its high-speed fibre-optic network.
The results statement does not give any additional information on the flotation of Independent's iTouch mobile telephone data subsidiary, which is expanding from its original South African base to US and European markets. Mr Healy would not comment on the iTouch flotation timetable, but informed sources said it was likely to be floated later this year, with up to 25 per cent of the company being sold to raise around $150 million to fund the start-up of the company. Independent currently has an effective 70 per cent stake in iTouch.
There were good performances in Australia, where Independent owns 41 per cent of APN News & Media, and in Britain, where losses - almost entirely due to the London Independent - were down to €4.8 million and in line with company expectations.
Mr Healy said the London Independent was on schedule to move into profits by the end of next year, the third year of a three-year programme to turn the title around.
Analysts said that the best news in the results came with the recovery of fortunes in New Zealand and South Africa, in addition to a a higher-than-expected contribution from Independent's Portuguese associate.
In New Zealand, the local economic recovery produced a 13 per cent rise in operating profits to €50 million, with improved trading continuing into the first quarter of the current year.
In South Africa, the 9 per cent fall in operating profits to €23.3 million was a much better result than expected. "This is encouraging after a difficult first half. The recovery began in the fourth quarter and has continued in recent months," said ABN Amro analyst Mr John Clarke.
The British Trade and Industry Secretary, Mr Stephen Byers, has referred Independent's £380 million bid for the Belfast Telegraph to the Competition Commission for investigation. This is a mandatory referral as the Telegraph's circulation is more than 50,000. Independent said in a statement that it would co-operate fully with the commission's enquiries.
