SYDNEY - Australian publishing and advertising business APN News and Media Ltd today said it would undertake an on-market share buyback as it said it expects net profit growth of 10 per cent in 2005.
The company said that trading so far this year was in line with expectations.
"Your
board remains of the view that should current trading conditions continue, net profit growth of at least 10 per cent is achievable, resulting in a net profit after tax of at least A$141 million ($153 million)," APN chairman James Parkinson told shareholders at the company's annual general meeting.
This is an upgrade to previous guidance that the company was on track to meet consensus forecasts of just over A$140 million for 2005.
He noted that the profit forecast did not yet include the effect of changes under new international accounting standards, which would result in a net positive for the company.
Mr Parkinson also announced that APN would initiate an on-market buyback of up to 10 per cent of its ordinary shares, equating to about 47 million shares.
He said that a general meeting to deal with the matter was expected before June 2.
"APN will fund the buyback using existing facilities. The buyback will be accretive to earnings per share," Mr Parkinson said.
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
