Australian media group APN, in which Independent News and Media has a 39.2 per cent stake, has revised down its profit forecasts for this year.
In a statement chairman Gavin O'Reilly said it now expects net-profit after tax, but before non-recurring items, of between Aus$100 million and Aus$110 million. This compares to a forecast of Aus$140 million made in February when it released its full-year results.
The company has also appointed former chief executive Vincent Crowley to the board.
"While certain advocacy groups may suggest that Vincent’s appointment confounds the spirit of best corporate governance, the directors are mindful that we need people of the caliber and expertise of Vincent, and especially at this challenging time for our industry. In that regard, I am confident that shareholders will join me in welcoming his return,” Mr O’Reilly said in the statement.
The company said its capital expenditure for this year will be Aus$25 million and will remain at that level for the next few years, compared with Aus$80 million last year.
At the end of April the company had “in excess of Aus$120 million in cash and undrawn facilities”.