INL shares jump after solid half

Shares in media group Independent Newspapers Ltd rose almost 4 per cent yesterday after the company reported a 43 per cent jump in half-year profit.

INL, 45 per cent-owned by media mogul Rupert Murdoch's News Corp, attributed the buoyant result to improved advertising revenues and reduced losses by 66 per cent-owned subsidiary Sky TV.

Advertising revenue from INL's publications was up 5.9 per cent from the same period a year earlier.

INL chief executive Peter Wylie said the positive trend in advertising had continued into the current half year.

That was in keeping with a worldwide improvement in advertising spending.

Wylie said Australian media publishing and television companies had recently increased their forecasts because of an anticipated strong recovery in advertising revenues.

"For INL newspapers, major international sporting events such as the Rugby World Cup are likely to drive increased readership and advertising revenues throughout this year," he said.

Wylie said that the company was on track to increase earnings in the full year.

INL owns nine daily papers in New Zealand, including Wellington's Dominion Post, created last year through the merger of the Dominion and long-struggling afternoon paper the Evening Post.

The company also owns the country's two Sunday papers, one Australian daily paper, the Stuff website, the TV Guide, and a range of national magazines, including New Zealand House and Garden.

Sky TV increased its earnings before interest, tax, depreciation and amortisation by 33 per cent to $71.6 million during the half year.

It lifted its subscriber numbers to more than 516,000.

The company's statement said that the Stuff division had virtually halved its losses because of increased advertising revenues.

INL shares closed up 11c, or 3.6 per cent, at $3.16 yesterday.

- Staff reporter, NZPA