APN posts record profit, says outlook positive

APN News & Media today reported a record annual net profit of A$149.7 million ($169.1 million), up 16 per cent on the previous year.

Earnings before interest and tax for the year to December were up 9 per cent at A$309.4 million.

A final dividend of A15.4c per share was declared, up 10 per cent on the year earlier.

APN chief executive Brendan Hopkins said the results were after expenses of about A$13 million associated with launching community newspaper The Aucklander in 2003 and the Herald on Sunday in 2004.

He said both titles were expected to move into profit over the next two years.

APN operates 23 regional daily newspapers in New Zealand and Australia, and over 100 non-daily titles.

APN's other New Zealand publications include the New Zealand Herald, The Listener, New Zealand Woman's Weekly as well as the Radio Network.

Mr Hopkins said the outlook for the full year was positive for the company.

"While it is too early to predict a fifth consecutive year of double digit earnings growth, the early part of the year is trading in line with our expectations and, given a continuation of current conditions, the board believes that further significant earnings growth of at least 5 per cent looks likely," he said.

Mr Hopkins said the Herald on Sunday had exceeded expectations in terms of both readership and circulation, to become Auckland's best-read Sunday paper.

Its main competition is the Fairfax-owned Sunday Star-Times.

The Herald on Sunday has an Auckland readership of 217,000 and a total readership of 349,000. The audited circulation is 91,076.

Mr Hopkins said since the paper launched 18 months ago, Auckland's Sunday newspaper readership has grown 30 per cent.

The paper has doubled it share of the Sunday advertising market, to 40 per cent.

The Aucklander has a readership of 453,000 and has grown its share of Auckland advertising volume to 7 per cent, from 4 per cent.

The New Zealand Woman's Weekly boosted its circulation by 5 per cent, and has a readership of 950,000, while the Listener has a readership of 23,000.

Mr Hopkins said the New Zealand regional titles had a strong year, with national revenue from its 44 community titles doubling in 2005.

APN has also boosted its online presence in New Zealand, charging for premium content on www.nzherald.co.nz, launching an online auction site www.bidnsave.co.nz, and buying the Netcheck employment website, which has been integrated into the new Search4jobs brand. APN also owns the UBD business directories and Wises mapping websites.

APN said these businesses were expected to generate revenues of over $10 million in 2006.

- NZPA

* APN is the owner of The New Zealand Herald and nzherald.co.nz, as well as a number of regional newspapers and radio stations.