Newspaper publisher predicts solid earnings growth

APN News & Media, publisher of the New Zealand Herald, said yesterday that results in the first four months of 2006 had been in line with expectations and reiterated it expected full-year earnings growth of at least 5 per cent.

"In our forecasts we recognised the strong trading performance achieved in the first half of last year and we are trading ahead of that at present," chairman James Parkinson said.

"While it is too early to predict a fifth consecutive year of double-digit earnings growth and given a continuation of current conditions, the board believes that further significant earnings growth for the year of at least 5 per cent looks likely," said Parkinson.

Chief executive Brendan Hopkins said APN would concentrate its online energies on its current products.

"Our strategy is to grow within. We are not going out and paying big dollars for existing players," he said.

APN's main rival in New Zealand, John Fairfax, recently paid $700 million for online auction site TradeMe.

"We believe in the strength of our markets and the very under-developed nature of the New Zealand online market at the moment means we have plenty of opportunity to grow our own businesses from within our existing products," Hopkins said.

APN rose 1c to $6.02 on the NZX.

APN, which publishes more than 100 newspapers in Australasia, is 40 per cent owned by Independent News & Media.

- REUTERS, NZPA