INM's operating profit up 4.5%

Independent News & Media's operating profit grew by 4.5 per cent in the first-half of the year to €154.6 million, according to figures released today by the media group.

The newspaper publisher, which operates in Ireland, Britain, South Africa, Australia, New Zealand and India, said adjusted earnings per share (EPS) rose to 8.03 cents in the six months to end-June from 7.43 cents a year earlier.

That was slightly better than the 7.9 cents seen by analysts at Davy Research although Goodbody Stockbrokers had expected underlying EPS to be a little higher at 8.1 cents.

The company also said restructuring initiatives such as the outsourcing of sub-editing and page layout were delivering sustainable payroll and other savings.

It added that the company was continuing with a rapid expansion of its online operations in tandem with its print businesses and is also planning to invest in Independent College - a new education initiative.

Independent says it is recruiting lecturers core faculties of law, accountancy, journalism, arts and continuous professional development, with enrolments underway for courses starting in November.

Independent said its revenue growth was largely driven by the publishing division whose revenues grew by 5.1 per cent on the back of good increases in advertising revenues which were up 6.3 per cent with circulation revenues up 2.5 per cent.

"The market is looking for somewhere around the 19 cent level for the full-year and I think we would be very comfortable with that," chief operating officer Gavin O'Reilly said in an interview.

Revenues in the first half rose 2.4 per cent to €815.5 million ($1.13 billion), driven by growth in both advertising and circulation.

Mr O'Reilly said Independent News expected low to mid single-digit percentage growth in revenues in the second half.

Independent News chief executive Anthony O'Reilly said in the company's earnings statement that positive trends seen in the first half had continued into the second half.

"Based on the continuation of these trends, we believe that your group's wide-ranging activities will deliver continued earnings growth and sustain industry-leading operating margins," he said.

Addtional reporting Reuters