APN says first half earnings to fall

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Publisher APN News and Media Ltd says first half earnings will be up to $20 ($NZ27.1) million below those in the first half of calendar 2010, but it expected trading to improve in the second half of the year.

The Australian company, which owns the New Zealand Herald, regional papers and the Listener, told shareholders on Tuesday that it was implementing "a round of restructuring initiatives" in response to the earnings fall.

At the company's annual general meeting, APN said it expected earnings before interest and tax (EBIT) in the first half of calendar 2011 to be $15 million to $20 million below those last year.

"Despite some improvement in Queensland, earnings are still being impacted by the repercussions of the earthquake on an already weak New Zealand economy coupled with an extremely strong Australian Dollar," APN chairman Gavin O'Reilly told the meeting.

"As a result, it is now expected that the first half EBIT will be below last year by $15 million-$20 million.

"In response, APN has commenced a round of restructuring initiatives in our publishing operations."

APN's outdoor advertising and radio divisions continued to trade ahead of 2010, however, O'Reilly said.

"Notwithstanding such a difficult start to 2011, APN's trading is anticipated to improve in the second half, although it is not expected that the full year result will match APN's 2010 earnings.

"This return to positive earnings momentum will ensure the continuity of dividends and most importantly, enable the pursuit of growth-orientated initiatives."

- AAP