Herald parent's profit up 27pc

Independent News & Media, parent company of the New Zealand Herald, yesterday reported a 27 per cent rise in first-half profits as Ireland's largest newspaper publisher tapped the booming Irish economy and cut costs in New Zealand, Australia and South Africa.

Income after tax and minorities rose to 32.8 million euros ($67 million) from 25.9 million euros. The interim dividend was raised 17 per cent to 4.44 cents.

"The results for the group for the full year are expected to show a worthwhile improvement over 1998," said Independent News chief executive Liam Healy in a statement.

As previously reported, Wilson & Horton, the New Zealand Herald's immediate parent, had operating profits of 20.2 million euros, up 0.5 million euros, on turnover down 2.1 million euros at 104.1 million euros.

First-half operating profit in Ireland rose from 29.4 million euros to 33.5 million on turnover of 139.6 million euros, up 12.6 million euros. All its newspapers reported higher circulation while group advertising revenues rose.

Group profits were also bosted by a first-time consolidation of AP News & Media, the Australian company in which the group has a 41.8 per cent stake. AP News & Media's operating profits were 25.1 million euros on turnover of 127.3 million euros.

Operating profits in South Africa fell 2.4 millions euros to 8.9 million euros on sales of 83.3 million euros, reflecting the weak economy.

In Britain, circulation of the Independent reached 225,516 in June, its highest level in 17 months. But a slow economy hit the group's titles. They recorded an operating loss of 3 million euros, against a profit of 3.8 million euros, on turnover up 20 million euros to 71.4 million euros.