Earnings for APN News & Media are returning to a "more normal" pre-global financial crisis pattern, says chief executive Brendan Hopkins.
APN - which publishes the Herald - reported an 11 per cent rise in half-year net profit to $40 million, before exceptional items and discontinued operations.
The company said that on a like-for-like basis, revenue was up 5 per cent and earnings before interest and tax were 19 per cent ahead of the previous corresponding period.
That comparison reflected the impact of the sale of the Kurnia Outdoor business in Malaysia, and the cancellation of outdoor contracts taken in-house by transit companies in New Zealand and Hong Kong.
"This result is about momentum," Hopkins said. While the slow first quarter had flattened out, revenue in the second quarter had seen a real upswing and that was continuing into quarter three.
The second quarter saw strong growth, with total revenue up 8 per cent and ebit up 22 per cent on a like-for-like basis.
"In Australia, we are seeing a lot of our markets returning to pre-GFC [global financial crisis] levels," he said.
In New Zealand, the recovery was underway, although at a slower pace.
The New Zealand markets with exposure to national advertising - such as the outdoor business - were doing better.
Ebit for APN's New Zealand businesses increased 14.6 per cent in local currency terms to $34 million during the period.
Newspaper and online operations continued to perform well, Hopkins said.
The company declared an unfranked interim dividend of 5c a share. On the NZX yesterday APN shares closed down 19c at $2.35.
APN earnings returning to pre-crisis levels
APN chief executive Brendan Hopkins Photo / NZ Herald
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