5 Dec 2011 14:31
Dublin/London - 5th December 2011: Independent News & Media PLC's ['INM'] 30.4% owned associate APN News & Media Ltd ['APN'] today released the following statement
MARKET ANOUNCEMENT
APN 2011 INVESTOR CONFERENCE UPDATE
SYDNEY, December 5, 2011 - APN News & Media Limited [ASX,NZX:APN] today released the following update in advance of its Investor Conference today.
APN expects to achieve full year NPAT of between $75m and $77m, which is slightly below current market consensus.
Trading for the second half has been significantly better than the June half which was impacted by a series of natural disasters in Queensland and New Zealand. Whilst the direct impact of these events has dissipated, the second half result is behind the prior year due to the well reported weakness in advertising markets in Australia and New Zealand. EBIT for the year is expected to be between $171m and $173m. APN's result for this half has also been impacted by the weakness in the NZD which has depreciated almost 5% since we announced our interim result in August.
Chief Executive Brett Chenoweth said: "Whilst our markets have been tougher than we would have liked this half, we have made material progress in repositioning APN and remain focused on managing the levers that are within our control.
"In a competitive environment, we have gained market share in Outdoor and in both our Australian and New Zealand radio businesses. These businesses are well positioned for further growth in 2012. Our emerging digital businesses GrabOne and CC Media are beginning to contribute meaningful digital revenue streams for APN and the digital culture across the group is building.
"Our cost management is vigilant and we have exceeded the cost reduction targets announced to the market in April. APN is driving further productivity improvements across the group as the company prepares for 2012"
Across APN's publishing business conditions remain challenging and the company continues to initiate changes in the portfolio, responding to market demand. APN recently announced material changes to the publishing schedules in two smaller, yet highly competitive markets, Tweed Heads and Coffs Harbour. This innovation will reconfigure print products and put more emphasis on APN's online offering. The company expects improved profitability in these markets as a result of such changes.
APN's focus for 2012 will include continuing to reinvigorate its product set in publishing, expand its Outdoor business and making further progress across a rejuvenated series of programming initiatives in the radio businesses. APN's digital repositioning will also continue to be a priority.
APN refers to the recent ASX announcement on 21 November regarding APN's Outdoor assets. The company has a strong and vibrant Outdoor business and is exploring options to reposition and further expand this business. APN will make further announcements as they are required.
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