Jason Media expects profit drop

Jasons Travel Media expects its interim operating earnings to be down, even though operating revenue is up.

The NZAX-listed publisher said consolidated operating revenue for the six months to September 30 is expected to be 3 per cent greater than the same period last year but earnings before interest, tax, depreciation and amortisiation of $2.33 million will be 11 per cent below the same period last year.

The company forecast stable performance in both revenue and profitability in 2010 after reporting operating revenue for the year to the end of March of $14 million, up 2.6 per cent from the previous year, while net profit fell 17.9 per cent to $806,000.

The company produces and distributes travel directories and guides, and runs websites.

"The revenue from core print and web products and our tourism brochure distribution business has been good," chairman Geoff Burns said.

As previously indicated, revenue from regional and city guides in New Zealand and Australia has contracted.

"Although we have experienced revenue downturns on those guides, we have retained spend on them to ensure they retain market credibility and are well positioned for future growth. It is pleasing to note we are starting to see some improvement in this part of our business as we move into summer."

- NZPA