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SYDNEY - Media group APN News & Media Ltd says it has pushed past a challenging year to report a record full year profit.
APN, which publishes The New Zealand Herald, announced today a net profit for calendar 2006 of A$159.52 million ($181 million), up seven per cent.
APN chief executive Brendan Hopkins said 2006 had been a challenging year, particularly in the middle two quarters.
"Queensland recorded good growth, while the markets of Auckland, Sydney and Melbourne were flat to negative," he said.
"Despite this we have recorded a satisfactory trading result and, with effective capital management, have delivered an acceptable outcome for shareholders.
"We are particularly pleased with our Australian Publishing and Outdoor results, the latter, as foreshadowed, assisted by the end of a number of uneconomic contracts.
"For the 2007 year to date, trading is in line with expectations and with the prior year."
Analysts have forecast earnings before interest, tax, depreciation and amortisation (EBITDA) of A$373 million.
Revenue for fiscal 2006 was down two per cent to A$1.34 billion.
Regional Publishing performed well, growing earnings before interest and tax (EBIT) of six per cent on the back of strong growth in the prior year.
In New Zealand, the 2006 outcome was affected by the inclusion of commercial printing, with EBIT lifting three per cent.
Readership of APN major publications, especially The New Zealand Herald and Herald on Sunday with the introduction of new sections, saw strong growth.
The radio division delivered strong results in the face of challenging market conditions, Mr Hopkins said.
In Australia, revenue grew 87 per cent and, in New Zealand, advertising revenue lifted 14 per cent.
The outdoor division saw a EBIT growth of 41 per cent.
APN this month agreed to a revised A$2.8 billion offer from a consortium including Tony O'Reilly's Independent News and Media PlcIndependent and private equity firms Carlyle Group and Providence Equity Partners.
In the deal Mr O'Reilly's Irish company reduces its stake in the Australian company APN News and Media to 35 per cent from 42 per cent.
The consortium raised their offer to A$6.10 per share from last month's A$6.05 per share, APN said in a statement.
Independent will reduce its stake in APN to 35 per cent from 42 per cent under the deal, while Caryle will hold 27.5 per cent and Providence 37.5 per cent.
APN's earnings per share increased 10 per cent to 34.3 cents.
The company spent A$140 million buying back 27.8 million shares, taking the total spent since the buyback commenced in June, 2005, to A$275 million.
The share buy-back programme has been suspended pending the outcome of the takeover proposal.
Independent sub-committee chairman, Ted Harris, said the results confirmed the offer was in shareholders' best interests and "we recommend all shareholders vote in favour of the proposal".
Shareholders are expected to vote on the bid at a meeting in late April.
* APN owns nzherald.co.nz, the New Zealand Herald, Herald on Sunday, Aucklander and other papers throughout the country. It is also joint owner of The Radio Network.
- AAP
