Newspaperless INL's net profit plunges by 82pc

Independent Newspapers Ltd yesterday reported an 82 per cent drop in net profit for the year to June.

The now newspaper-less company posted a net profit of $70.94 million for the year, down from $388.5 million the previous year.

The previous year's result was boosted by INL's sale of its stable of 80 newspapers and magazines to Australia's John Fairfax Holdings for $1.2 billion. INL has since returned $340 million in capital to shareholders.

Yesterday's result includes a $35.2 million profit from INL's 78.3 per cent shareholding in Sky Network Television, a $20.5 million profit on the sale of the Geelong Advertiser, and $23.6 million interest earned on INL's cash assets.

Total operating revenue fell to $488.5 million, from $929 million.

INL, which is 44 per cent owned by Rupert Murdoch, will pay a fully imputed final dividend of 3c a share on September 24. In March, the company paid an interim dividend of 6.4c a share.

Earnings per share were 16.9c, against 92.1c last year.

INL's remaining major asset, apart from $310 million in cash, is its 78.3 per cent stake in Sky TV.

Shares in INL jumped 29c to close at $5.02 yesterday.

- NZPA