WAN's profit slips 21pc

SYDNEY: West Australian Newspapers Holdings' annual net profit dropped 21 per cent as advertising revenue fell but the group says trading conditions are improving, helped by new resources projects in Western Australia.

WAN shares fell 21c to A$6.15 yesterday after it reported net profit fell to A$87.2 million for the 12 months to June 30, compared with A$109.9 million in 2007-08.

The publisher and radio station operator forecast in June a normalised net profit between A$93 million and A$98 million for 2008-09, as it announced it was cutting fulltime equivalent staff numbers by 8.6 per cent across the group. The company said yesterday that normalised profit, which removes one-off reorganisation costs, fell 20 per cent to A$97.1 million and revenue fell 11 per cent to A$418.6 million.

However, chief executive Chris Wharton said trading conditions were beginning to improve, helped by new projects in the resource sector in Western Australia.

Wharton said the company halted a long-term circulation slide in the March quarter. The West Australian's circulation increased 0.3 per cent in the June quarter to 343,677 copies for the Saturday edition and gained 1.3 per cent to 197,508 copies for the weekday edition. Its advertising revenue fell 15.8 per cent to A$236.8 million.

- AAP