In its half year results APN News & Media has recorded a statutory net loss of $256.9m, prompting its CEO Ciaran Davis to reveal the future of the company will have ‘zero exposure to traditional publishing’.

The loss came through booking the demerger from New Zealand Media Entertainment and the proposed divestment of Australian Regional Media (ARM) as discontinued operations.

The company’s revenue remained steady at $129.1m compared to $129.4m in 2015, while EBITDA was boosted by seven per cent to $35.9m. Net profit after tax rose by 690 per cent from $1.3m to $10.1m.

APN is finalising the sale of ARM, which recorded a six per cent drop in revenue to $89m and a 42 per cent plunge in EBITDA to $4.7m.

APN is urging shareholders to vote in favour of News Corps bid of $36.6m for the floundering ARM business when its general meeting is held on September 16. 

Commenting on the company’s performance, CEO Davis says the sale will signal APN’s exit from all traditional publishing markets and will allow it to focus on growth areas.  

“In the last six months we have achieved all of our key objectives, and with a successful sale of ARM, the company will have zero exposure to traditional publishing assets, and 100 per cent exposure to growth media assets with good cash flow profiles,” Davis says.

“This is a game changer for APN, and our strategic priorities for APN are clear. We are going to focus our energy and investments on those areas of the business that will deliver the greatest shareholder returns.”

Davis has tipped radio and its outdoor media business Adshel as the company’s future cash cows.

In the half year to June 2016, Adshel delivered revenue growth of 15 per cent to $82.8m and a 25 per cent surge in EDITDA to $18m.

APN is expanding Adshel’s reach in the outdoor media market with 190 digital panels set to be rolled out later in the year and a further 60 to be deployed at the start of 2017.

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