KEY POINTS:
New Zealand Herald publisher APN News and Media Ltd today reported an 8 per cent rise in annual net profit on the back of growth in its key markets.
The benefits of significant levels of restructuring across all APN would flow in 2008 and 2009, chief executive Brendan
Hopkins said.
He said trading in the year to date was in line with expectations, but he did not make any specific forecast for the coming year because of the current market turmoil.
"Whilst it is difficult to forecast against the current economic backdrop, trading year to date is in line with expectations and ahead of the prior year in both Australia and New Zealand."
APN, which owns newspapers and radio stations in Australia and New Zealand and sells advertising space on buildings and vehicles, said net profit for the 12 months to December 31 was a record A$169.4 ($197m), from A$159.5m a year ago.
Analysts had expected earnings of A$171m.
Trading revenue rose 4 per cent to A$1.3 billion.
A final dividend of 21 cents per share was declared to be paid on April 24.
Diluted earnings per share rose to A34.4c from 32.5c.
Mr Hopkins described the result as "very satisfactory".
"There was continued growth in Queensland, producing good trading conditions for Regional Publishing.
"Outdoor returned an excellent result, with a strong performance from the Australian and Hong Kong markets.
"New Zealand Publishing produced positive results from our Auckland-based businesses, with The New Zealand Herald and Herald on Sunday both showing year-on-year growth."
The company had invested in online distribution and reported significant revenue gains had been made.
"We continue to view the internet as both an important extension of existing media brands, as well as an opportunity to build revenues and profit in new and exciting sectors."
The Auckland and Sydney radio markets showed only moderate growth but APN was optimistic about an improved outcome for 2008.
NZ Publishing net profit rose 3 per cent to A$50.2m, lagging the Australian Publishing division's 5 per cent rise to A$116.1m. The radio division also rose 3 per cent to A$48.4m.
APN publishes 23 regional daily newspapers and more than 100 non-daily publications.
In Australia, a unified advertising services bureau had been launched, acting as a central production resource for all Australian publications.
A similar facility is to be established in Auckland.
It also planned to establish centralised customer contact centres in each country targeted at increasing both inbound and outbound sales conversion rates and targeting more newspaper subscribers.
In New Zealand, property advertising remained a cornerstone of performance for the regional newspapers, particularly in Northland and Hawke's Bay.
A strong cost focus, innovative sales campaigns and new product extensions helped deliver a satisfactory outcome for the NZ publishing division.
"In particular, new systems and skills at the Auckland-based customer contact centre are starting to increase revenue per call from inbound sales, as well as enhance outbound sales campaigns," Mr Hopkins said.
He said readership figures for The New Zealand Herald and the Herald on Sunday, released on Friday, were very encouraging, with both titles increasing penetration in their key markets.
More than 40 per cent of all Aucklanders aged 15-plus read a copy of The New Zealand Herald each week.
The New Zealand Herald website, nzherald.co.nz, produced record revenue growth, averaging almost 600,000 unique browsers each week.
Strategic alliances with Google and Microsoft in New Zealand will assist with traffic generation, Mr Hopkins said.
During the year APN invested A$175m on acquisitions and capital equipment including A$110m on acquisitions.
APN shares closed yesterday at A$4.80, well down on the A$6.20 offered by Independent News and Media plc (INM) in last year's A$3 billion failed takeover bid. INM owns 39.7 per cent of APN.
- NZPA