Independent News & Media Regulatory News (INM)

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.

- ENDS -

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