HY1 revenue up at APN as profits plummet

APN News & Media has seen a five per cent revenue increase from continuing operations to $427.6m in its first half, compared to last year’s $405.9m, but saw a 67 per cent profit decline. However net profit excluding the exceptional items is up three per cent to $25.1m from last year’s $23.8m.

Michael Miller, CEO of APN

Michael Miller, CEO of APN

Revenue for its Australian Regional Media newspaper business fell by five per cent to $94.5m with an EBITDA slide of 22 per cent as newspaper revenue continues to fall. The company’s EBITDA from continuing operations and before exceptional items was up by one per cent to $71.2m compared to $70.7m for the same period last year. Peter Cosgrove, APN chairman, says the company has delivered a solid result in a competitive market. He says, “The board is confident in the ability of APN’s management team to continue delivering results for advertisers and shareholders through growth and efficiency-enhancing initiatives planned for the rest of 2015.” ARM is focusing on growing its digital revenue, which is up 40 per cent, and says closing its Toowoomba printing plant and new editorial systems will lead to $10m in cost savings. Advertising revenue is down six per cent, with local advertising holding steady at two per cent down – somewhat better than the big falls seen in metro newspapers at News Corp and Fairfax. Ciaran Davis, APN chief executive, says the company has implemented several initiatives that demonstrate its commitment to evolving its traditional media business models while investing in new revenue streams such as the acquisition of Perth radio station 96fm, a $25m cost-cutting program, and new technology in its outdoor media businesses. “APN’s 2015 half results reflect a soft advertising market in Q2 and a company in an important transition phase. APN continues to generate strong cash flows and we have good balance sheet flexibility to invest in further growth opportunities. “The Australia Radio Network (ARN) continues to have strong market leading positions in key metro markets across Sydney, Adelaide and Brisbane, and there are encouraging signs from the launch of KIIS 101.1 in Melbourne and the investment in Perth’s 96FM, which is integrating well into the KIIS network.”

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