19 May 2014 17:30
Interim Management Statement
Ticker: (Bloomberg) INM.ID/INM.LN and (Reuters) INME.I/INME.L
Dublin/London 19 May 2014: Independent News & Media PLC ('INM' or the 'Group') today issues an interim management statement covering the period from 1 January 2014 to 16 May 2014.
INM's year-on-year performance for the twenty weeks of 2014, from 1 January to 16 May 2014 (being the latest practicable date for this purpose prior to the date of this announcement) is as follows:
· Total Group Revenues declined by 2.8%;
· Total Newspaper Advertising Revenues declined by 2.4%;
· Total Digital Advertising Revenues increased by 17.8%;
· Total Circulation Revenues declined by 2.5%; and
· Operating Costs reduced by 2.8%, despite a substantial investment in digital activities, in line with the Group's digital strategy.
Trading conditions, since the announcement of the Group's 2013 full year results on 13 March 2014, have improved on the trends experienced up to that date. Total newspaper advertising revenues are down by 2.4% year to date ('YTD'), compared to a decline of 2.8% at 13 March 2014. A number of newspaper advertising categories have shown strong YTD growth, with recruitment, property and inserts showing the largest year-on-year revenue increases. The reduction in newspaper advertising revenue YTD is primarily related to the performance of our Northern Irish ('NI') operations, with the Republic of Ireland newspaper business showing a YTD decline of 1.0%.
Digital revenues are up 17.8% YTD, compared to an increase of 14.6% as at 13 March 2014. This performance is principally due to strong growth in our digital publishing operations, together with our NI classifieds business, with GrabOne showing marginal YTD growth.
Despite the YTD revenue reductions and the substantial investment in our digital operations, which is intended to position the business for future growth, the impact on profitability has been largely mitigated by continued cost reductions (through Project Quantum and the carry forward impact of Project Resolute savings) across the business.
Other Matters
In line with the earlier announcement, Group CEO, Vincent Crowley is resigning from the Board, effective today. In conjunction with the existing executive management team, a sub-committee of the board, consisting of Leslie Buckley, Triona Mullane, Allan Marshall and Terry Buckley, will assume responsibility for the management of the Group pending the appointment of a new CEO. The search for a replacement CEO is ongoing.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Some statements in this announcement are forward-looking. They represent our expectations for our business and involve risks and uncertainties. We have based these forward-looking statements on our current expectations and projections about future events. We believe that our expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond our control, our actual results or performance may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this document and no obligation is undertaken, save as required by law or by the Listing Rules of the Irish Stock Exchange and/or the UK Listing Authority, to reflect new information, future events or otherwise.
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For further information, contact:
Nigel Heneghan Heneghan PR Tel: + 353 (0) 1 660 7395 Mob: + 353 (0) 86 258 7206 nigel@hpr.ie
| Vincent Crowley Group Chief Executive Officer Independent News & Media PLC Tel: +353 1 466 3200 vincent.crowley@inmplc.com
Eamonn O'Kennedy Group Chief Financial Officer Independent News & Media PLC Tel: +353 1 466 3200 eamonn.okennedy@inmplc.com
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CORPORATE PROFILE
Independent News & Media PLC is a leading newspaper and media group across the island of Ireland. It also has a significant shareholding in APN News & Media, an Australasian publicly listed media company.
The Group has market-leading newspaper positions in the Republic of Ireland and Northern Ireland, with a strong and growing digital presence, including market-leading digital positions with more than 35 editorial, classified and transactional sites. INM is the largest newspaper contract printer and wholesale newspaper distributor on the island of Ireland.
In Australasia, the Group has an 18.6% investment in APN News & Media Limited. APN is the largest newspaper publisher in New Zealand and a leading regional publisher in Australia. It is also Australasia's largest radio operator with over 140 stations and has a 50% interest in Adshel, which specialises in street furniture in Australia and New Zealand. APN also has a leading outdoor advertising position in Hong Kong.
In aggregate, INM manages gross assets of €273.8 million and employs approximately 1,000 people.