Pay wall plan on track, says APN chief

Michael Miller says NZME. is set to launch the first stage of its paid digital content model this year.

APN News & Media, publisher of the New Zealand Herald, says it is on track to introduce paid content this year, but that its initial public offer plans for NZME. were not conditional on having an internet pay wall in place.

Sydney-based APN said it had deferred any potential sale of its New Zealand assets by at least 12 months to allow the benefits of integrating the businesses and putting them under one roof to flow through to the bottom line.

Last September, APN combined its New Zealand businesses - which also include NewstalkZB and daily deal website GrabOne - under a single entity, NZME., and raised the possibility that NZME. could be floated on the NZX and Australia's ASX.

APN said its net profit after tax before exceptional items for the calendar year 2014 was up 27 per cent at A$75.2 million, which was in line with market expectations.

The company's earnings before interest, tax, depreciation and amortisation (ebitda) - before exceptional items - was up 1 per cent at A$164.1 million while its statutory net profit after tax was A$11.5 million compared with A$2.6 million in 2013.

In November, APN said NZME. was forecast to generate $55 million of annual revenue from digital and new initiatives this year. "Having seen the results [of integration] already, it gives us greater confidence that the plans that are in place will deliver a result in 2015 that is ahead of the result that we published in the market place last November," APN chief executive Michael Miller said.

NZME. publishing was on track to launch the first stage of its paid content model this year and, consistent with international markets, the investment was expected to result in new earnings for the business from the second year.

APN was looking at a number of options for NZME. -- including "co-location", shared newsrooms and integrated sales teams.

The possible float was not conditional on a pay wall being in place. "Contrary to others' beliefs, there are other things that will change the business more substantially than a pay wall," Miller said.

The New Zealand operation's overall revenues were down 6 per cent year-on-year at $410.2 million ebitda was down 11 per cent to $75.1 million. APN shares closed up A2.5c at A92.5c on the ASX and were unchanged yesterday at 88c on the NZX.