APN posts 9.6pc profit growth in NZ media business

APN said The New Zealand Herald ended the year with gains in circulation and delivering seven year highs in readership. Photo / David White.

Australian-based APN News & Media said its New Zealand media business had a solid year in 2010 with revenue growth of 1.7 per cent and growth in earnings before interest and tax of 9.6 per cent in local currency terms.

The growth in profit is 7.3 per cent in reported Australian dollar terms. The company reported a A$71.3 million ($96 million) profit in the year to December 31 in its New Zealand media business, which includes The New Zealand Herald newspaper and nzherald.co.nz on revenue of A$320.1 million.

A breakdown showed a 2.2 per cent rise in revenue in the second half from a year ago in local currency terms and a 0.8 per cent fall in reported Australian dollar terms. Earnings before interest and tax in the second half of A$37.3m were up 5.4 per cent in local currency terms and 2.5 per cent in Australian dollars.

The New Zealand Radio business reported a A$12.8m profit, which is down 2.7 per cent on the previous year in local currency terms and down 4.6 per cent in Australian dollar terms.

The company said the New Zealand radio market returned to solid growth in the December half and The Radio Network has gained market share in recent months. The Radio Network posted a A$8.3m profit in the second half, up 10.1 per cent in local currency terms.

"Investment in new structures and programming are beginning to produce good returns," the company said.

It said The New Zealand Herald ended the year with gains in circulation and delivering seven year highs in readership.

"Together with its online presence, the Herald brand now reaches 1.3 million New Zealanders each week," the company said.

APN was a launch partner with Apple for the introduction of the iPad in New Zealand. The New Zealand Herald application has been downloaded by more than 33,000 users and is regarded as the industry leader in its category, the company said.

Herald on Sunday advertising was up 16 per cent year-on-year and the newspaper experienced strong readership growth.

Commenting on current performance, the company said its performance in New Zealand in the year-to-date was broadly in line with the prior period apart from retail advertising, which remains challenging and was down 11 per cent in January.

The radio business in New Zealand has continued momentum build in late 2010 in the new year to be ahead of the prior year in both revenue and earnings.

- NZPA