Independent News and Media (INM) said today its advertising revenue stabilised in the second half of 2009 and some markets already showing year-on-year operating profit growth in 2010, despite poor advertising markets.
The media group said it was expecting an operating profit this year as improving trends continued into the start of 2010.
In a statement this morning, the group said revenue for 2009 fell 13.2 per cent at constant exchange rates to €1.25 billion, which the company described as "a comparatively resilient performance".
Operating profit was down 35.9 per cent to €177.2 million, with profit before tax falling from €211.7 million to €114.4 million. Operating costs, meanwhile, fell 9 per cent compared to a year earlier as the group implemented cost cutting measures.
Net debt was reduced significantly, falling to €367 million before currency movements were taken into account. This was partly achieved through an asset disposal programme which raised about €150 million.
"Following the successful conclusion to our complex financial debt refinancing in 2009, it is reassuring to be able to now look forward to 2010 where we will build on the underlying profitability and real progress that INM's operations achieved in 2009, with solid market share advances and continued efficient cost management," said group chief executive Gavin O'Reilly.
"Both advertising and underlying profitability in each of our geographic regions stabilised in the second half of 2009 and that trend has continued into 2010, with certain markets already showing year-on-year operating profit growth. While it is still very early in the year, if these current trends continue, we would target an improvement in operating profit for 2010."
INM said discussions with Russian billionaire Alexander Lebedev, who owns the Evening Standard, over the sale of the London Independent and its sister title, the Sunday Independent were ongoing, with an announcement expected soon.
