The company said the earnings decline in its publishing business was due to the contraction in commercial printing and the investment made in the transition to digital. On a bright note its outdoor business grew by 22 per cent.

Brett Chenworth, CEO, APN New and Media says, “It has been a tough first half for our publishing businesses, particularly in New Zealand. While it is clearly a difficult result, our newspapers have remained very profitable and relevant despite difficult advertising markets and structural challenges.”

APN shares slumped to a new low of 42.3c, with a rumoured equity raising only one of a number of problems.

The company’s Australian and New Zealand Publishing Group saw a 17 per cent fall in earnings before tax (EBITDA) for the six months compared to last year. It recorded a 23 per cent drop in EBITDA for the New Zealand publishing business – it pointed to an impairment of $485m for the New Zealand publishing business.

Its Australian Regional Media (ARM) arm had revenue of $125.5m for the six months, down by seven per cent.

Earnings for its Australian publishing division dropped nine per cent to $21.2m however, earnings from APN’s Australian radio business lifted 11 per cent on the previous corresponding period.

APN’s New Zealand publishing business posted earnings of $21.7m, down 20 per cent from the previous corresponding period.

APN’s Outdoor Group, with its APNO product range of outdoor advertising and signage grew substantially, with a 22 per cent rise in revenue for the period to $67m, following contract wins including Yarra Trams, and retaining Australia’s largest outdoor advertising contract, with the NSW State and Transit Authority Bus Fleet, it recorded a total revenue of $181.7m for its outdoor businesses including Adshel and Hong Kong Outdoor.

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