Independent News & Media Regulatory News (INM)

12 Dec 2007 17:34

Independent News & Media PLC12 December 2007 2007 FULL YEAR PRE-CLOSE TRADING UPDATE Ticker: (Bloomberg) INM ID/ INM LN and (Reuters) INME.I/ INME.L Dublin/ London, 12th December 2007: Independent News & Media PLC ('INM' or the'Group'), a leading international media and communications group, today issuedits pre-close trading update for the year ending 31st December 2007. This pre-close trading update is intended to provide all market participantswith broad guidance on the Group's financial and operating performance during2007, and reflects the actual performance for the 11 months ended 30th November2007. INM's 2007 full year results are scheduled for release on 19th March 2008. SUMMARY HIGHLIGHTS | FY 2007 * • Good top-line growth, with record Group revenue expected to be achieved and ahead year-on-year by c. 3%. • Group Publishing (newspapers & online) advertising revenues forecast to be up by c. 4%. • Online revenues (including the Group's share of associates) forecast to be up by c. 70%. • Group newspaper circulation revenues forecast to be up by c.1%. • All markets showing advertising growth in publishing and online • Online associates (Verivox and Cashcade) performing substantially ahead of plan. • Continued efficiencies achieved in all operating units as a result of new technology investments and new workflows. • Indian associate, Jagran Prakashan Limited ('JPL'), continues to perform very strongly. • In the Education sector, Independent College was launched in Ireland in H2 2007 and the Group is currently reviewing further global opportunities in this area. * in constant currency terms REVENUES | FY 2007 During 2007, the Group saw good underlying year-on-year growth in bothadvertising and circulation revenues, reflecting the continued vigour of theGroup's market-leading positions across publishing and online, radio andoutdoor. Total revenues for the Group for the 12 months to 31st December 2007are expected to be up by approx. 3%, in constant currencies, compared to therecord revenues achieved in 2006. o Advertising - Publishing The Group's advertising revenue in the publishing division is forecast to growby approx. 4%, with all markets (Australasia, Ireland, South Africa and theUnited Kingdom) ahead year-on-year, against particularly strong comparators inH2 2006. Throughout 2007, Retail, ROP/ National and Classified advertising wasconsistently strong and property advertising in total across the Group was aheadof 2006, despite a sharp slowdown in Irish property advertising. However, thebroad range of sources of the Group's Irish advertising revenues are such thatit is expected to show high single digit percentage growth in total in 2007. o Advertising - Online Like-for-like online revenues (including the Group's share of associates) areexpected to be up by approx. 70%, again with all markets ahead stronglyyear-on-year in constant currency terms. This growth - which is exceeding marketgrowth in most of our regions - emanates from good classified volumes andpricing, and very strong display and affiliate advertising on the Group'sleading newspaper and classified portal sites and has been enhanced by thestrong performance of the Group's other strategic online investments. o Advertising - Radio and Outdoor Both our market-leading Radio and Outdoor Advertising divisions are forecast toperform in line with expectations in 2007. o Circulation The Group's circulation revenues are expected to be up by approx. 1% in constantcurrency terms, as a result of volume initiatives and selective cover priceincreases in most markets. OPERATING COSTS 2007 has seen a major realignment of INM's cost base across all of its maindivisions, with significant efficiencies achieved in the area of headcount andinternal work flows. The Group's restructuring programme for 2007 is virtuallycomplete and in line with the targets outlined in the Interim Resultsannouncement. Operating costs continued to be well-managed, in spite of newsprint priceincreases in 2007, which are expected to reverse in 2008. Additionally, theinstallation of our new Group-wide Atex editorial system has facilitated furtherenhancements in page production efficiencies and real-time editorial copysharing across the Group's network of titles, with particular reference to theforeign bureau service of The Independent in London. ASSOCIATES • India: Our 20.8%-owned associate, Jagran Prakashan Limited ('JPL')recently announced record revenues and record PAT, up over 40% for the half yearto 30th September 2007. At the current share price, our investment value hasincreased by approx. 400% in just over 2 years. • Online: - Verivox: our 49%-owned associate is now the largest utility price comparator business in Germany. It is forecasting a significant increase in profitability in 2007 and continued strong growth in 2008. - Cashcade: our 20%-owned associate, one of the largest online bingo operators in the United Kingdom, is currently being expanded into other INM markets. Cashcade is forecasting strong profit growth in 2007 and 2008. CAPITAL MANAGEMENT On 30th November 2007, the New Zealand Cumulative Exchangeable Preference Shares("CEPS") matured, with holders of 52,291,119 CEPS electing to exchange forordinary shares in INM. To date in 2007, as part of its efficient capitalmanagement policy, the Group has purchased 40,600,363 ordinary shares whichlimited the dilutive impact of the CEPS conversion on INM shareholders toapprox. 1.5%. The combined effect of these is to further strengthen the Group'sBalance Sheet. OUTLOOK The Group's Chief Executive Officer, Sir Anthony O'Reilly, stated: "Your Group's diverse and international portfolio of uniquely strong brandsacross publishing and online, radio and outdoor advertising continues to deliverconsistent growth in revenues, profits and dividends. This growth - throughconstant product innovation and our unrelenting attention to detail - continuesto yield significant returns for all shareholders. "We are pleased to say that, despite the global turmoil experienced in the 2ndhalf of 2007, your Group is trading in line with expectations and remains wellpositioned for continued growth." This pre-close trading update has been brought forward from the original planneddate of 20th December 2007 in order to confirm to the market INM's strongtrading performance in 2007, following recent negative commentary on globaladvertising in general and certain aspects of the Irish advertising market inparticular. Ends 12th December 2007 Note Regarding Forward-Looking Statements Some statements in this announcement are forward-looking. They represent ourexpectations for our business, and involve risks and uncertainties. We havebased these forward-looking statements on our current expectations andprojections about future events. We believe that our expectations andassumptions with respect to these forward-looking statements are reasonable.However, because they involve known and unknown risks, uncertainties and otherfactors, which are in some cases beyond our control, our actual results orperformance, may differ materially from those expressed or implied by suchforward-looking statements. These forward-looking statements speak only as ofthe date of this document and no obligation is undertaken, save as required bylaw or by the Listing Rules of the Irish Stock Exchange and/or the UK ListingAuthority to reflect new information, future events or otherwise. For further information, please contact: Gavin O'Reilly +353 1 466 3200 Chief Operating Officer Donal Buggy +353 1 466 3200 Chief Financial Officer +------------------------------------------------------------------------------+|Media |+--------------------------+------------------------+--------------------------+| | | |+--------------------------+------------------------+--------------------------+|Pat Walsh |Rory Godson |Paul Keary |+--------------------------+------------------------+--------------------------+|Murray Consultants |Powerscourt Media |Financial Dynamics (New ||(Dublin) |(London) |York) |+--------------------------+------------------------+--------------------------+| | | |+--------------------------+------------------------+--------------------------+|Tel: +353 1 498 0300 |Tel: +44 207 236 5619 |Tel: +1 212 850 5600 |+--------------------------+------------------------+--------------------------+|Investors and Analysts | | |+--------------------------+------------------------+--------------------------+| | | |+--------------------------+------------------------+--------------------------+| | | |+--------------------------+------------------------+--------------------------+|Mark Kenny/ Jonathan | | ||Neilan | | |+--------------------------+------------------------+--------------------------+|K Capital Source (Dublin) | | || | | |+--------------------------+------------------------+--------------------------+| | | |+--------------------------+------------------------+--------------------------+|Tel: +353 1 631 5500 | | |+--------------------------+------------------------+--------------------------+|Email: | | ||INM@kcapitalsource.com | | |+--------------------------+------------------------+--------------------------+ Independent News & Media PLC ('INM') is a leading international newspaper andcommunications group, with its main interests in Australia, India, Ireland, NewZealand, South Africa and the United Kingdom. Spanning four continents, 10 majormarkets and 21 individual countries, INM has market-leading newspaper positionsin Australia (regional), India, Ireland, New Zealand and South Africa. In theUnited Kingdom, it publishes the flagship national title, The Independent, aswell as being the largest newspaper group in Northern Ireland. Across these regions, the Group publishes over 180 newspaper and magazinetitles, delivering a combined weekly circulation of over 31 million copies witha weekly audience of over 100 million consumers and includes the world's largestread newspaper, Dainik Jagran, in India. The Group has established a strong andgrowing online presence, with over 100 editorial and classified sites. INM is the largest radio operator - over 130 stations and an audience of almostsix million people - and outdoor advertising operator in Australasia and alsohas leading outdoor advertising positions in Hong Kong, Malaysia, India,Indonesia and across Africa. The Group has grown consistently over the last 15 years by building ageographically unique and diverse portfolio of market leading brands, and todaymanages gross assets of €4.1 billion and revenues of €1.8 billion. Further information is available on the Group's website www.inmplc.com. This information is provided by RNS The company news service from the London Stock Exchange