Big boost for media giant

By Karyn Scherer

An improving economy has boosted the fortunes of media group Wilson & Horton Holdings for the six months to the end of June.

The company, which publishes the New Zealand Herald as well as a slew of provincial papers, magazines and commercial printing operations, said yesterday that its revenue in the second quarter was well ahead of the first quarter. It said trading conditions continued to look positive.

Although total revenue across the group was down to $213.5 million from $218.4 million last year, lower costs and unrealised foreign exchange gains of $160.2 million helped boost its bottom-line profit for the half-year to $160.2 million.

The result compares with a loss for the same period last year of $44.7 million.

Chief executive John Sanders said newspaper advertising had picked up strongly since the beginning of May, particularly classifieds and job advertising, and all company divisions were now performing well.

Cost reductions at its regional and community newspapers meant the division was likely to see double-digit growth for the full year. Its magazine and street-mapping business were also performing strongly, and that looked like continuing in the second half. New business was also likely to boost the commercial printing operation in the second half.

The company continues to predict cost savings of around $8 million as a result of a major restructuring last year which included more than 200 redundancies.

Formerly known as Independent Press Communications, it was created by Dublin-based Independent News and Media for the acquisition of the New Zealand media group.

The half-year result follows another record half-year profit from Independent News and Media's Australian subsidiary, APN News and Media.

The parent company is due to announce its half-year result on September 3 - the same day New Zealand media group Independent Newspapers will announce its annual result.