Earnings: INM Revenues Rise To 816m Euros; Profits Fall 13 Percent On Restructuring

Independent News & Media today reported revenues of 816 million euros (566 million pounds) as half-year profits fell by 13 percent to 94 million euros (65.2 million pounds) due to exceptional restructuring charges of 29 million euros (20 million pounds). The newspaper publishers, which has operations in the UK, Ireland, Australia, India, New Zealand and South Africa, said it was comfortable with growth targets of between 3 and 5 percent for the rest of 2007.

— Advertising revenue across both print and online has continued its growth trend although online was “marginally loss-making” in the first half of the year. INM has 100 web sites internationally, but this only represents some 3 percent of revenues overall (compared to 65 percent for print). Total revenues were 12.9 million euros (8.96 million pounds), a growth of 34.4 percent.

— INM pointed out some notable increases online: the New Zealand Herald’s site, a division of APN (of which INM has a 38.5 percent stake) grew ad revenues by 75 percent. In Ireland, LoadzaJobs.ie is now the second-most popular recruitment site in the country. PropertyNews.com, the biggest property site in Northern Ireland, is extending into the republic. In the UK, ad revenue grew by 7.1 percent across both print and online compared to the same period a year ago. INM singled out in its analyst presentation the growth of London-focussed online advertising.

— Collectively the online sites attracted some 12.5 million unique users.

— INM said it plans to focus more on educational investments. It opened its Independent College in Dublin, which it says leverages its educational holdings both in print and online, offering courses in law, accountancy, journalism, arts and continuing education. The group says it wants to cross-promote the courses through its media holdings (print, online, radio and outdoor advertising) and plans to extend the college concept into other markets outside Ireland.

— Circulation at the daily Independent newspaper in the UK shrank by 1.3 percent, in line with a general decline across the industry. The UK remains INM’s smallest market in terms of profitability; it reported operating profits of 7.3 million euros (5 million pounds) compared to 6.1 million euros a year ago.

results | analyst presentation

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