Upbeat outlook at Independent News and Media

In an upbeat appraisal of prospects for Independent News & Media, Sir Anthony O'Reilly, the chief executive, has expressed confidence that the international newspaper group would again achieve a meaningful improvement in underlying profits over the coming year.

Speaking at the company's annual meeting in Dublin, Sir Anthony said that trading was continuing in a positive fashion, with both circulation and advertising revenues comfortably ahead of last year.

Sir Anthony used the occasion to paint a rosy view for the future of the newspaper industry. In this, the company's centenary year, Sir Anthony proclaimed that rumours of the death of newspapers had been much exaggerated.

With newspaper titles in six of the world's fastest growing economies, including The Independent and The Independent on Sunday the group sees the internet as a companion and a tool in cost reduction, but not as competition for the next decade.

The annual meeting coincided with two key events in the group's development.

One is the sale of the group's interest in iTouch, realising £67.3m in cash, which will be deployed elsewhere in the group.

The other is the group's pioneering investment in India's most widely read newspaper, Dainik Jagran, which was cleared by the Indian government two weeks ago.

The proceeds from Independent News & Media's investment will largely be used for expansion, with 25 different print stations spread across northern India, each with its own software so that editions can automatically be customised to local dialects.

Sir Anthony insisted that for advertisers, the newspaper remains the most effective mechanism to convey to the potential consumer the virtue, value, colour and style of any new product, service or offering.

"There are no TiVos to exclude advertising in your TV viewing. There are no DVDs to replace normal television but there is, I think, the correct mixture of news, views and creative advertising that provides a satisfying menu to all consumers," Sir Anthony said.

He went on to say that The Independent, apart from being voted Newspaper of the Year last year, is now seen as "a considerable group asset, whose stories and bylines are increasingly used within the overall group throughout the world".

Sir Anthony noted that the success of The Independent's compact format continued apace, with the paper recently moving to "a beautifully designed, single-section structure".

"We have had 18 consecutive months of year-on-year circulation growth and now have the best advertising demographics in the United Kingdom."

* Independent News & Media has a shareholding in Australasian publisher APN News & Media.

APN owns nzherald.co.nz and the New Zealand Herald, having bought New Zealand's biggest newspaper publisher, Wilson & Horton, more than three years ago. It is also joint owner of The Radio Network.

- INDEPENDENT