APN News lifts profit to $116m

By MARK FRYER

Buoyant demand for advertising has helped Herald publisher APN News & Media boost its full-year profit by 15 per cent.

The company yesterday reported a profit of A$103.55 million ($116 million) for the year to the end of December, up from A$90.18 million in 2002. Excluding non-recurring items, the increase was 20 per cent.

APN also revealed that it is considering having its shares listed on the New Zealand stock exchange, as well as in Australia.

No definite decision had been made, said chief executive Brendan Hopkins, "though if I was a betting man I'd say it looks highly likely. If we're going to do it, it would be something we'd announce later this year."

Revenue from ordinary activities was up by almost 9 per cent, from A$1.071 billion in 2002 to A$1.166 billion. Before-tax profit was up by almost 26 per cent, from A$135.7 million in 2002 to A$170.79 million last year.

Earnings a share rose from 20.8Ac to 22.9Ac.

Newspapers accounted for 72 per cent of APN's earnings before interest and tax (ebit), or A$169.4 million. More than half of that came from the Herald - whose ebit rose from A$72.1 million to A$88.8 million - with the rest coming from APN's regional publications on both side of the Tasman.

The rise in earnings at the Herald included a 9 per cent increase in circulation revenue - despite a 1.9 per cent fall in paid circulation, partly due to a price increase last year.

Hopkins said trading had stayed strong this year and "given a continuation of current trading conditions, the board remains confident of a further meaningful improvement in profitability in 2004".

While no one knew what the year would bring, "there is a buoyancy that remains, particularly in the residential property market and the employment market ... that buoyancy looks like continuing at least through the first half.

"I would still describe the numbers you're seeing in the first eight weeks of the year - where fundamentally you're seeing the best part of 10 per cent revenue growth in the Herald and the New Zealand regionals and something like 15 per cent growth in the Australian regionals - those are still very strong numbers, and numbers that in an average year you wouldn't expect to see."

APN will pay a final dividend of 11.8Ac, bringing the full-year dividend to 18.3Ac a share, up 14 per cent on 2002. The company's shares closed unchanged at A$3.86 on the ASX yesterday.