19 Nov 2014 07:00
Interim Management Statement
Ticker: (Bloomberg) INM.ID/INM.LN and (Reuters) INME.I/INME.L
Dublin/London 19 November 2014: Independent News & Media PLC ('INM' or the 'Group') today issues an Interim Management Statement covering the period from 1 January 2014 to 14 November 2014 for the Continuing Group*.
INM's year-on-year performance for the forty six weeks of 2014, from 1 January to 14 November 2014 (being the latest practicable date for this purpose prior to the date of this announcement) is as follows:
· Total Group Revenues declined by 2.2%;
· When the impact of the closure of the Group's NI free-sheet business is adjusted for, underlying total advertising revenues (print and online) increased by 0.4%;
· Total Circulation Revenues declined by 2.7%; and
· Operating Costs reduced by 2.9%, despite a substantial investment in digital activities, in line with the Group's digital strategy.
Year to date ('YTD') trading trends, since the announcement of the Group's Interim Results results on 28 August 2014, have remained broadly unchanged. Total print advertising revenues are down by 3.4% YTD (underlying down by 2.6%, allowing for the NI free-sheet impact as referred to above), compared to a decline of 2.7% for the first six months of the year. A number of newspaper advertising categories have continued to show strong YTD growth, with Property, Recruitment (ROI) and Inserts showing the largest year-on-year revenue increases, with recent weeks showing a noticeable improvement in advertising conditions compared with a more challenging revenue environment over the Summer months. Circulation revenue declines have continued at a marginally higher rate, with a YTD decline of 2.7%, versus a deficit of 2.4% for the first six months of the year.
Online revenues are up 33.1% YTD, compared to an increase of 30% for the six months ended 30 June 2014. This performance is principally due to continued strong growth in our digital publishing operations, which continue to deliver on substantial growth in unique users and traffic, together with our NI classifieds business. The Group's daily deals website, GrabOne, recorded YTD growth of 8.6%, compared with marginal growth for the first 6 months, with the business delivering on its strategic re-focussing on higher value deals.
Total Advertising Revenues (print and online) were only down by 0.4%, with an improving performance over recent weeks.
The Group has delivered a marginal increase in YTD profitability (versus a flat performance for the first six months of the year), with continued cost savings more than offsetting YTD revenue reductions and the substantial investment in our digital operations.
*Note: The 'Continuing Group' excludes the results of the Education businesses, which were sold in June 2014, and the South African business, which was sold in August 2013.
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.
- ENDS -
For further information, contact:
Nigel Heneghan Heneghan PR Tel: + 353 (0) 1 660 7395 Mob: + 353 (0) 86 258 7206 nigel@hpr.ie
| Robert Pitt Group Chief Executive Officer Independent News & Media PLC Tel: +353 1 466 3200 robert.pitt@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 which is quoted on the ASX (Sydney). APN is a leading provider of outdoor advertising in Australia and New Zealand and has a strong growing operation in Hong Kong. It is also a large radio operator, with three of the top five national radio networks in New Zealand and a number of major networks in Australia. It is the largest newspaper publisher in New Zealand and a leading regional publisher in Australia.
In aggregate, INM manages gross assets of €259.6 million and employs approximately 1,000 people.