KEY POINTS:
APN News & Media is interested in buying US partners Clear Channel Communications out of shared radio assets including The Radio Network, says chief executive Brendan Hopkins.
Hopkins delivered annual results for the transtasman company yesterday, announcing an 8 per cent increase in net profit to A$169.4 million ($195.3 million). APN - which owns the New Zealand Herald, the Listener and New Zealand Woman's Weekly - has declined to predict the year ahead.
"Given the current turmoil in world markets, the board believes it is inappropriate to give specific projections at this time," Hopkins said.
Hopkins said APN was "very lowly geared" and conscious of changes in the media market.
"But we are not casting around to acquire anything that moves," he said.
He acknowledged potential for Clear Channel to sell out of its half of the ARN radio joint venture - which owns 12 metropolitan stations in Australia and TRN, with half of New Zealand's commercial radio stations including Newstalk ZB. He said if Clear wanted to sell its stake, APN would be "very interested" in discussions.
US-based Clear is merging with US private equity interests including Bain Capital Partners and has already been selling non-core radio assets,.
"If new owners did not want to retain its 50 per cent stake in radio APN could have talks at that time.
"If something comes across the horizon we would have to be very interested, and that would have to be a sizeable transaction," he said.
APN said results were buoyed by good results for Australian publishing and outdoor advertising.
New Zealand regional publishing was down in line with local economies and performance for New Zealand businesses "remained subdued".
But with dairy payouts these should perform better around September. He said radio income on both sides of the Tasman was flat.
The Herald on Sunday was now profitable and the Aucklander was showing reduced losses.
APN announced a dividend of 21 cents per share to be paid on April 24.
Underlying revenue for the group was A$1.3 billion, up 4 per cent and earnings before interest, tax, depreciation and amortisation (ebitda) was A$361 million, up 6 per cent on the previous year.
APN NEWS & MEDIA
Results to December 31
* Revenue
2007: A$1.314b
2006: A$1.266b
* Ebitda
2007: A$361m
2006: A$342m
* Net Profit
2007: A$169.4m
2006: A$157.5m
