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Earnings slump at APN News and Media

Thursday, February 21 10:44:14

Australia's APN News and Media, in which Ireland's Independent News and Media (INM) has a 29pc stake and which has been wracked by a boardroom cull this week, has posted big losses and writedowns for 2012.

Revenue was down 13pc to A$929m (E721m) and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was down a massive 25pc to A$156m (121m). Net Profit After Tax (NPAT) before exceptional items was A$54m in line with guidance.

The media company - which saw its chairman, chief executive and three other directors resign this week after a disagreement with its Irish shareholders - reported a A$455.8 million statutory annual loss for 2012. The company experienced drops in revenue and earnings over the year.

An impairment charge of A$151m, relating to APN's publishing assets in both New Zealand and Australia, followed the A$485m writedown announced in August.

The new APN Chairman, Peter Cosgrove said: "The structural changes to media together with the weak advertising markets have impacted the results. Work has been done to reposition the business and we are seeing encouraging improvements. We have also been disciplined in reducing costs while investing in growth where appropriate."

"Australian Radio Network, Adshel and GrabOne all delivered good performances in 2012, with strong increases in revenue, earnings and market share. These results have been achieved in a difficult environment."

"Our publishing divisions are pushing through extensive change agendas which have been well received by our audiences and are gaining traction with advertisers. Cost reduction programs delivered A$25m in savings in 2012 with another A$25m reduction expected this year."