APN expects increase in net profit

SYDNEY - APN News and Media Ltd expects to achieve a 13 percent to 15 percent increase in full year net profit.

The Trans-Tasman media group reported a net profit of $A149.4 million($NZ161.18 million) in calendar 2004.

The company issued the guidance as it provided a trading update ahead of a briefing for investors tomorrow.

APN said that since its half-yearly results announcement in August, "trading across the group has remained in line with previous guidance, with continued positive growth rates moderating as trading is set against strong 2004 second half comparisons".

APN said its regional newspaper markets have delivered "excellent" growth to the end of the third quarter.

"In Australia, advertising in the key categories of employment, real estate and retail remained strong across the 14 daily newspapers and 60-plus community titles,'' the company said in a statement.

"Advertising growth in quarter three was buoyant, driven by good volume improvements over the same period in 2004.

"Circulations for the Australian daily newspapers were in line with last year after cover price rises in many of our markets, delivering thirteen consecutive quarters of positive circulation gains to June 2005 for the division."

APN also said its press centre development at Yandina on the Sunshine Coast remains on track to be operational in the second half of next year.

APN said in New Zealand, advertising revenue in the nine daily newspaper titles and 30-plus community titles remained strong.

"New Zealand National Publishing, incorporating The New Zealand Herald, Herald on Sunday, The Aucklander and New Zealand Magazines, continues to perform well in softer economic conditions," APN said.

The company said third quarter advertising volumes in The New Zealand Herald were lower but yield continued to show strong growth.

"Overall, circulation market share increased in the Auckland market in the year to September in both revenues and volumes, driven by the strong performance from The Herald on Sunday," APN said.

"Overall volumes were up four percent and revenues up five per cent on the prior corresponding period."

APN said its radio stations have delivered "outstanding overall market share gains".

"This increase in market share, driven by ratings in the agency market and a continued strong performance in the direct advertising market, has produced continued growth in advertising revenue in quarter three," APN said.

"Although growth in the overall Australian radio advertising market has moderated, APN has achieved revenue growth rates significantly in excess of the market."

The company said The Radio Network (TRN) in New Zealand was leading the market in survey ratings in 2005.

"In a slowing advertising quarter for the radio industry in New Zealand, TRN has increased its quarter three revenue share and delivered good EBIT (earnings before interest and tax) growth."

For its other businesses, APN said there was a strong earnings improvement for its outdoor business, while it continues to develop its online capabilities.

* APN owns nzherald.co.nz and the New Zealand Herald, having bought New Zealand's biggest newspaper publisher, Wilson & Horton, more than three years ago. It is also joint owner of The Radio Network.

- AAP