Independent News & Media Regulatory News (INM)

19 Feb 2008 07:03

Independent News & Media PLC19 February 2008 APN NEWS & MEDIA LIMITED - RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007 APN announces 8% increase in Net Profit to a record A$169.4m Dublin/London - 19th February 2008: APN News & Media Ltd ('APN'), in whichIndependent News & Media PLC ('INM') has a 39.2% shareholding, today announced arecord Net Profit After Tax for the 2007 Financial Year of A$169.4 million, an8% increase on the prior year, before non-recurring items (NRIs) of A$2 million. Underlying revenue increased 4% to A$1,314.2 million. Before NRIs, EarningsBefore Interest, Tax, Depreciation and Amortisation (EBITDA) was up 6% toA$361.0 million and Earnings Per Share on a diluted basis were up 6% to 34.4cents. The Board of APN today declared a final dividend of 21.0 cents per share,payable on 24 April 2008, taking the total dividend to 31.5 cents per share, a6% increase over 2006. 2007 Full Year Result (pre-NRI)---------------------------------------------------------------------------A$ million 2007 2006 Growth---------------------------------------------------------------------------Underlying Revenue* 1,314.2 1,266.9 4%EBITDA 361.0 342.0 6%Net Profit 169.4 157.5 8%Diluted Earnings Per Share 34.4c 32.5c 6%Net Profit post-NRI 167.4 159.5 5%---------------------------------------------------------------------------* Excludes finance and other income, businesses closed/sold and NRIs APN Chief Executive Brendan Hopkins said: "This is a very satisfactory outcomeand emphasises the value of APN's broad portfolio of assets in diversegeographic markets. Indeed, the performance for the year was within 2% of theforecast detailed in the Deloitte Independent Expert's Report published in April2007. "There was continued growth in Queensland, producing good trading conditions forRegional Publishing. Outdoor returned an excellent result, with a strongperformance from the Australian and Hong Kong markets. "New Zealand Publishing produced positive results from our Auckland-basedbusinesses, with in particular The New Zealand Herald and Herald on Sunday bothshowing year-on-year growth. "Investment in Online continued and significant gains have been achieved interms of revenue and traffic to our key sites. We continue to view the internetas both an important extension of existing media brands, as well as anopportunity to build revenues and profit in new and exciting sectors. We aremaking good progress in both areas. "After several years of good Radio growth, a sluggish Sydney market coupled withstrong competition tempered the division's results. While some major marketssuch as Auckland and Sydney showed only moderate growth, we are optimistic aboutan improved outcome for 2008. "The second half of 2007 saw a continuation of significant levels ofrestructuring across all APN divisions. The full benefits from these changeswill flow in 2008 and 2009. "Whilst it is difficult to forecast against the current economic backdrop,trading year to date is in line with expectations and ahead of the prior year inboth Australia and New Zealand." Second Half Divisional EBIT results----------------------------------------------------------------------------(A$ million) H2 2007 H2 2006 Growth %----------------------------------------------------------------------------Publishing 116.1 110.7 5% - Regional Publishing 65.9 62.2 6% - NZ National Publishing 50.2 48.5 3%Radio 48.4 47.0 3%Outdoor 27.8 19.3 45%Corporate & Other (5.9) (7.4)Group EBIT(pre NRI & NPI) 186.4 169.6 10%NPI (New Product Initiatives) (5.2) (3.3) - Online (4.0) (1.7) - Other (1.2) (1.6)Businesses disposed/closed 0.0 0.9Group EBIT (pre NRI) 181.2 167.2 8%NRI (6.3) (4.9)Total EBIT 174.9 162.3 8%---------------------------------------------------------------------------- Regional Publishing APN publishes 23 regional daily newspapers and more than 100 non-dailypublications across high growth markets in Australia and New Zealand. TheCompany aims to be the number one regional publisher - in print and online - inits Australian and New Zealand markets. The Regional Publishing division againperformed well, growing EBIT by 5%, reflecting continued positive economicconditions. In Australia, the broad base of the Queensland economy continued to produce goodconditions for APN's local publishing operations. In 2007, good growth in themining industry and housing constructions led to strong trading conditionsacross the State. Recent rains have also contributed to a positive medium termoutlook for the farm sector. Low unemployment rates as well as a long pipelineof government-backed infrastructure projects across Queensland means growth inlocal demand is expected to continue. In line with APN's strategy to leverage the strength of its existing mediabrands to develop complementary assets, a series of regionally-focused glossmagazines were acquired or launched during the year. The Style network is nowcomplete, with 14 separate editions and 570,000 copies of the monthly lifestylepublication now distributed in every major market from Coffs Harbour in northernNew South Wales to Cairns in far north Queensland. The division is beginning to generate efficiencies through the launch of aunified advertising services bureau, acting as a central production resource forall Australian publications. A similar facility is to be established inAuckland. Equally, the establishment of centralised customer contact centres ineach country is targeted at increasing both inbound and outbound salesconversion rates and targeting more newspaper subscribers. In New Zealand, property advertising remained a cornerstone of performance forthe regional newspapers, particularly in the coastal areas of Whangarei andHawke's Bay. Some regional markets slowed during the year as interest rateincreases took effect. A number of markets should benefit from record dairypayouts in May. New Zealand National Publishing (NZNP) NZNP comprises The New Zealand Herald, the Herald on Sunday, The Aucklander andNew Zealand Magazines. The division's objective is to build on its position asthe number one publisher, in print and online, in Auckland. Economic conditions in New Zealand moderated in 2007, continuing the trend fromthe previous year. However, a strong cost focus, innovative sales campaigns andnew product extensions helped deliver a satisfactory outcome. In particular, new systems and skills at the Auckland-based customer contactcentre are starting to increase revenue per call from inbound sales, as well asenhance outbound sales campaigns. A number of accounts have been transitioned totelephone-based selling, improving both efficiency and profitability. Newrevenue streams are also opening up, particularly in trades and services. Readership figures for The New Zealand Herald and the Herald on Sunday, releasedlast Friday, were very encouraging, with both titles increasing theirpenetration in their key markets. More than 40% of all Aucklanders aged 15+ reada copy of The New Zealand Herald each week; and The Herald on Sunday is the mostread Sunday newspaper in Auckland and the northern region of New Zealand. Thishigh penetration in readership and online audiences of the Herald has enabledincreases in the packaging of print and online advertising. New Zealand Magazines expanded its reach with the acquisition of two titles,Simply You and Simply You Living. Simply You has been the leading fashion titlein New Zealand for more than five years, and Simply You Living is proving astrong challenger in the prestige home interiors category. Together with otherleading titles New Zealand Woman's Weekly, The Listener and young teen magazineCreme, the acquisitions broaden the offering to advertisers and open up newsectors of revenue to the group. Online The division made significant progress in growing revenue from online extensionsof existing APN media brands, as well as from online investments. APN aims to bethe largest operator in online advertising in each of its local markets acrossAustralia and New Zealand. The New Zealand Herald website, nzherald.co.nz, produced record revenue growth,averaging almost 600,000 unique browsers each week. Major events such as theRugby World Cup generated record traffic, together with the integration of videoand audio components on the site. Strategic alliances with Google and Microsoftin New Zealand will assist with traffic generation and distribution of APNOnline products in the market. The launch of thedaily.com.au on the Sunshine Coast was well received byadvertisers and readers, generating significant user traffic. A series ofwebsite launches based around APN daily publications is planned for 2008,further extending advertising market share in those regions. APN acquired the balance of the finda directories business in New Zealand sinceyear-end, already the most popular online business directory in the country.Significant product innovations and extensions are planned for the websitethroughout 2008. APN's investments in online holiday accommodation broker roamfree.com andentertainment listings business eventfinder.co.nz are meeting expectations andrecording satisfactory growth. Radio APN's Radio division aims to be the number one broadcaster in the 25-54demographic in Australia and the number one radio broadcaster overall in NewZealand. The Radio market continued to be highly competitive in 2007,particularly in the major markets of Sydney and Melbourne. Australian RadioNetwork stations finished the year strongly with good ratings momentum and astrengthened management team. New breakfast shows on the Mix stations launchedpromisingly in 2008, which together with well-established programmes on theClassic Hits stream, will continue to pursue the commercially important 25-54demographic. In New Zealand, The Radio Network maintained its position as marketleader, growing its overall audience share. TRN has four of the top fivestations in the largest market of Auckland, including the number one talkstation and the number one music station. Outdoor APN Outdoor aims to strengthen its position as the number one Outdoor operatorin Australia, New Zealand and its Asian markets. The Outdoor division again madea strong contribution, with EBIT up 42%. The Australian market overall grew12.3% in 2007 and APN Outdoor remains the market leader in each of the majorindustry categories. Adshel secured Australia's largest street furniture tenderwhen it retained the contract for Melbourne bus shelters, taking the potentialnumber of shelters in the city to more than 2,900. Adshel's inventory now totals11,000 illuminated panels. Significant gains were also made in the Large Formatand Transit categories, with new formats and innovative new inventory. In NewZealand, APN Outdoor was awarded two of the three largest outdoor contracts inthe country when it secured advertising rights to the national rail network aswell as to Christchurch International Airport. In Asia, growth has beensatisfactory, with particularly good results in Hong Kong, where Large Formatand Transit have produced excellent revenue growth. There will be some upliftfrom the 2008 Olympics in China, with Buspak Hong Kong being named Beijing 2008Olympic Games Equestrian Events Official Transit Advertising Agent. Capital Expenditure Programme During the year APN invested $175 million on acquisitions and capital equipment.This comprised $110 million on acquisitions including Simply You magazine, theCity News in Caloundra, the Woolgoolga Advertiser, Horizon Magazine, StyleMagazine, eventfinder.co.nz, roamfree.com and the remaining 50% of The Chroniclein Toowoomba, which was by far the largest purchase. The remaining $65 millionsubstantially completes the capital outlays associated with the capital andre-engineering programmes. Future recurring capital expenditure is expected tobe lower. Capital Management The buy back resumed in the second half with 11.2 million shares bought back ata cost ofA$59 million. The Company has now spent A$333 million on the buy back over thelast three years. The 66.2 million shares bought back have offset the dilutionresulting from the conversion of 63 million notes that were issued in 2001 tofund the Wilson and Horton acquisition. Outlook Trading year to date is in line with expectations, and revenue and profit areahead of the prior year in both Australia and New Zealand. Given the current turmoil in world markets, the Board believes it isinappropriate to give specific projections at this time. The Board remains ofthe view that APN's broad range of high quality media assets in diversegeographic markets will, once again, perform well in 2008. ENDS. Tuesday, 19th February 2008 For further information, please contact: Gavin O'Reilly Chief Operating Officer +353 1 466 3200 Donal Buggy Chief Financial Officer +353 1 466 3200 Media Pat Walsh Rory Godson Paul KearyMurray Consultants (Dublin) Powerscourt Media (London) Financial DynamicsTel: +353 1 498 0300 Tel: +44 207 250 1446 (New York) Tel: +1 212 850 5600 Investors and Analysts Mark Kenny/ Jonathan NeilanK Capital Source (Dublin)Tel: +353 1 631 5500Email:INM@kcapitalsource.com About APNAPN News & Media Limited (ASX, NZX:APN) ) is the largest media company in NewZealand, where it owns The New Zealand Herald, the country's largest newspaper.APN is the largest radio and outdoor advertising operator in Australasia as wellas Australia's leading regional publisher. APN is a leader in online in both NewZealand and in Queensland and has been listed on the Australian Stock Exchangesince 1992, and on the New Zealand Stock Exchange since June 2004. APN NEWS & MEDIA LIMITED PRELIMINARY PROFITS ANNOUNCEMENT A$000 A$000 €000 €000 31 December 31 December 31 December 31 December 2007 2006 2007 2006 Turnover-Continuing Operations 1,258,492 1,236,484 769,438 741,609 ========= ========= ======= ======= Operating Profit- Continuing Operations 316,789 302,568 193,684 181,472- Exceptional Items (8,529) (682) (5,215) (409) ------- ------ -------- ------ Profit from Continuing Operations 308,260 301,886 188,469 181,063 Net Finance Charge (63,359) (63,122) (38,737) (37,859) Share of Profit of Associates 6,829 4,930 4,175 2,957 ----- ------ ------ -----Profit on OrdinaryActivities before Taxation 251,730 243,694 153,907 146,161 Taxation (45,723) (45,196) (27,955) (27,107) ---------- --------- --------- -------- Profit on OrdinaryActivities after Taxation 206,007 198,498 125,952 119,054 Minority Interests (38,571) (38,975) (23,582) (23,376) -------- -------- -------- -------- Profit Attributable to Members of the Parent Entity 167,436 159,523 102,370 95,678 ======== ========= ========= ======= Basic Earnings per Share (cents) 34.5 34.3 21.1 20.6 Diluted Earnings Per Share (cents) 34.0 32.9 20.8 19.7 Profit & Loss Accounts translated at Average RatesAverage Exchange Rate 2006 €1 = A$1.6673Average Exchange Rate 2007 €1 = A$1.6356 APN NEWS & MEDIA LIMITED GROUP BALANCE SHEET A$000 A$000 €000 €000 31 December 31 December 31 December 31 December 2007 2006 2007 2006 Current AssetsCash and Cash Equivalents 88,814 70,681 53,403 42,248Receivables 246,380 223,702 148,145 133,713Inventories 21,988 21,939 13,221 13,114Tax Assets 5,628 24,861 3,384 14,860Other 29,998 28,120 18,036 16,807 ------ ------- -------- ------Total Current Assets 392,808 369,303 236,189 220,742 ------- -------- -------- -------- Non-Current AssetsReceivables 9,289 7,174 5,585 4,288Other Financial Assets 37,334 22,696 22,448 13,566InvestmentsAccounted for Using the Equity Method 29,155 25,703 17,531 15,363Property, Plant and Equipment 298,863 292,605 179,702 174,898Intangible Assets 1,813,369 1,740,614 1,090,355 1,040,415 --------- --------- --------- ---------Total Non-Current Assets 2,188,010 2,088,792 1,315,621 1,248,530 --------- --------- --------- --------- Total Assets 2,580,818 2,458,095 1,551,810 1,469,272 --------- --------- --------- --------- Current LiabilitiesPayables 178,296 197,295 107,206 117,929Derivative FinancialInstruments 2,093 3,418 1,258 2,043 Interest Bearing Liabilities 94,768 89,414 56,983 53,445Current Tax Provisions 18,941 5,299 11,389 3,167Provisions 7,530 14,108 4,528 8,433 ------ ------- ------ ------Total Current Liabilities 301,628 309,534 181,364 185,017 -------- -------- ------- ------- Non-Current Liabilities Payables 5,162 5,558 3,104 3,322Interest Bearing Liabilities 840,905 801,593 505,625 479,135Deferred Tax Liabilities 156,001 166,909 93,801 99,767Provisions 1,352 2,159 813 1,290 ------ ------ ------- ------Total Non-Current Liabilities 1,003,420 976,219 603,343 583,514 --------- -------- --------- ------- Total Liabilities 1,305,048 1,285,753 784,707 768,531 --------- --------- -------- ------- Net Assets 1,275,770 1,172,342 767,103 700,741 --------- ---------- -------- ------- EquityContributed Equity 916,572 817,579 551,123 488,690Other Reserves 13,467 25,497 8,097 15,239Retained Profits 101,772 86,559 61,194 51,739 ------- ------- -------- ------Total Parent Entity Interest 1,031,811 929,635 620,414 555,668Minority Interests 243,959 242,707 146,689 145,073 --------- --------- --------- ------- Total Equity 1,275,770 1,172,342 767,103 700,741 --------- ---------- --------- --------Balance Sheets translated at Closing RatesClosing Exchange Rate December 2006 €1 = A$1.6730Closing Exchange Rate December 2007 €1 = A$1.6631 This information is provided by RNS The company news service from the London Stock Exchange