APN says profit estimates likely to be met

SYDNEY - APN News & Media Ltd, owner of the New Zealand Herald, said it is likely to meet full year earnings targets after reporting a solid rise in full-year net profit.

APN reported net profit of A$128.27 million ($140.78 million) for the year to December 31, 2004, up 24 per cent on the same period a year earlier.

The company said trading to date in both Australia and New Zealand was pleasing and remained in line with expectations and ahead of the same period last year.

"Given a continuation of current trading conditions, the consensus full-year profit estimates currently in the market appear likely to be met," it said.

APN said revenue for the year was A$1.28 billion, up 10 per cent, while earnings before interest and tax (ebit) were up 19 per cent to A$282 million.

"After allowing for the cost impact of new product initiatives and increases associated with other revenue gains, underlying cost growth was 3 per cent," it said.

APN said it continues to benefit from operating in the strongest markets in Australasia.

"Queensland and the northern half of the North Island of New Zealand once again recorded strong economic conditions, producing above national average growth rates and near record employment levels," it said.

APN chief executive Brendan Hopkins said: "These are a very satisfactory set of results and demonstrate the continued strength of our core media businesses within their high growth markets and more than achieve our stated annual objective of double digit earnings growth."

APN recorded ebit growth across all divisions except corporate.

Publishing ebit was A$203.1 million, up 20 per cent, radio generated A$67.5 million, also up 20 per cent, while outdoor advertising made A$21.6 million, up 14 per cent.

Print and specialist ebit was A$9.9 million, up 31 per cent.

APN said trading in the first quarter of 2005 for the outdoor division had been positive and that forward books across Australia, New Zealand and Asia were "encouraging".

APN announced a partly franked final divided of 14 cents compared to 11.8 cents previously. This lifts total dividends for the year to 22 cents from 18.3 cents.

APN shares ended at A$5.02 yesterday.

- AAP