Net profit after tax was up 34 per cent to $57.9m on an increase in group revenue of ten per cent to $599.2m, and an increase in earnings before interest and tax by 20 per cent to $125.5m.
The profits will go towards a $25m upgrade to newspaper printing facilities on the Sunshine Coast, with the development of a new ‘greenfield’ site at Yandina. A new press, which is due to be commissioned by February 2006, will have capacity for 80 pages of back-to-back colour and online stitching capability. The development is additional to a $14m prepress system upgrade that is currently being rolled out across APN’s Australian regional centres.
Brendan Hopkins, APN chief executive, says, “This is a high quality result that is the outcome of a number of outstanding operational achievements in all five Divisions. Stripping out the effect of currency, the Group produced a 12 per cent increase in revenue, a 22 per cent increase in EBIT, a 39 per cent increase in profit before tax and a 37 per cent increase in net profit before non-recurring items.
“Key to the result was the improved margins in our Newspaper and Radio Divisions, which together account for 90 per cent of APN’s profit. By focusing on maximising the cut-through of revenue through to EBIT, we have been able to produce strong growth in operating profits.”
A highlight for the company was a positive trend in advertising sales. Hopkins says, “Our Newspaper and Radio Divisions have produced very good gains in advertising yields without sacrificing volumes, which provides a strong base from which to continue growing our businesses. The Outdoor Division is making good progress in its restructure and is on track for the predicted improvement in performance in 2005. The Commercial Print Division has, as forecasted, delivered a solid turnaround result, increasing EBIT by 50 per cent and securing a number of new third party contracts.
“Overall, we believe this is an excellent result with good growth in revenue producing above market expectation numbers. The second half has started strongly and gives us confidence that our high quality businesses in high growth markets are well positioned for continued above average growth.”
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