18 May 2012 07:00
INM ISSUES INTERIM MANAGEMENT STATEMENT
Ticker: (Bloomberg) INM.ID/ INM.LN and (Reuters) INME.I/ INME.L
Dublin/London 18th May 2012: Independent News & Media PLC ('INM' or the 'Group') today issued its Interim Management Statement ('IMS') which provides an update on INM's trading performance for the year to date (19 weeks ended 11th May 2012) in accordance with the reporting requirements under the Transparency Regulations 2007.
Year to Date Performance
INM's year-on-year Revenue trends, in constant currency terms, are behind the same period in 2011. Consistent with the Group's focus on continuing efficiency and cost reduction, Operating Costs have been reduced on the prior year.
In constant currency terms, Total Group Revenue is down 3.5% year-on-year (-5.2% in Euro terms), with Total Circulation Revenue 3.0% down (-4.4% in Euro terms) and Total Advertising Revenue (print and digital) down by 5.3% (-7.9% in Euro terms) on the same period in 2011. Within Total Advertising Revenue, Digital Revenue was up 17.6% (+17.0% in Euro terms).
Trading patterns were somewhat disrupted around the Easter period but now appear to be returning to more normal trends, with some stronger advertising weeks interspersed among weaker ones. The Group's leading titles continue to focus on maximising profitable market share.
Operating Costs continue to be well managed, with Total Group Operating Costs down 1.4% in constant currency terms (down 2.8% in Euro terms) year-on-year. Cost savings were delivered across all operations which more than offset inflationary cost pressure in South Africa and significant energy price increases.
All of the Group's Free Cash Flow year-to-date has been applied to debt reduction, with Net Debt currently standing at c.€420 million.
Key Events
There have been no new significant events within the Group in the year-to-date, other than those events announced as part of our 2011 Full Year Results Announcement on 22nd March 2012 and in APN News & Media Limited's ('APN') trading update on 2nd May 2012. In addition, in April, a number of Board changes were announced whereby Mr. Vincent Crowley replaced Mr. Gavin O'Reilly as Group Chief Executive Officer and Director, Mr. Bengt Braun retired as a Director and Baroness Margaret Jay signalled her intention not to seek re-election to the Board at the AGM in June.
Outlook for 2012
As the Group reported on 22nd March 2012, forecasting in the current climate is very difficult and, at present, advertising conditions remain challenging and erratic. Visibility remains short and susceptible to influence by macro-economic factors.
INM has a strong portfolio of market-leading and profitable titles. The Group also has a well invested and increasingly efficient asset base, with no significant near-term capital expenditure requirements. INM is committed to continued cost vigilance and we have strong operating leverage in our business to translate any improvement in market conditions directly to our bottom line. Our focus is on maximising available cash flow for continued debt paydown, which will deliver value for our shareholders.
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.
ENDS | 18th May 2012 |
For further information, please contact:
Vincent Crowley Group Chief Executive Officer Independent News & Media PLC +353 1 466 3200
Donal Buggy Group Chief Financial Officer Independent News & Media PLC +353 1 4663200 | Investors and Analysts Mark Kenny/Jonathan Neilan K Capital Source (Dublin) Tel: +353 1 663 3680 Email: INM@fd.com | |