KEY POINTS:
SYDNEY - NZ Herald publisher APN News & Media today reported a small lift in first half net profit and says it continues to believe its second half will be in line with expectations.
APN sees net profit for the full year growing by between five and 10
per cent.
Net profit for the six months ended June 30 rose 0.5 per cent to A$72.5 million, after trading revenue grew by 1.3 per cent to A$627.5 million.
The New Zealand National publishing group reported net profit before interest of $48m, unchanged from a year ago.
It said the Herald on Sunday had moved to profitability despite challenging conditions.
APN said net profit before non-recurring items rose five per cent to a record A$73.2 million.
"This is a solid outcome for the first half of the year," chief executive Brendan Hopkins said.
"While trading conditions in New Zealand were subdued, Australian publishing continued to perform well, due in part to the ongoing strength of the Queensland economy."
APN noted that the second half of the year is traditionally its busiest trading period.
"We are well placed to profit from changes that have been made to our business model and the ongoing growth of our portfolio of assets across a broad range of economies and geographies," Mr Hopkins said.
He said APN continues to invest in its online division by building new assets and forming strategic joint ventures.
"The company has almost completed the process of redefining its business model, requiring investment in new business systems, facilities and training that transforms the way we operate in our markets," he added.
The new business model has initially focused on the company's publishing divisions but will broaden its scope to radio, outdoor advertising and online.
"Already there has been a significant reduction in staffing requirements and an improvement in production efficiencies," Mr Hopkins said.
"The gains from the new business model have already been seen in July trading and will continue throughout the second half, with full benefits to be seen in 2008/09."
The company said it continues to believe that second half growth will be in line with expectations outlined at its recent annual general meeting.
"Growth in net profit after tax of between five per cent and 10 per cent is likely for the year," it said
- AAP
