29th Mar 2019 09:14
LONDON (Alliance News) - Independent News & Media PLC on Friday reported a significant drop in its annual profit as revenue, especially from advertising, slipped.
Some of Independent News & Media's titles include Ireland's Evening Herald and the Irish Daily Star.
For 2018, the newspaper publisher's pretax profit dropped 37% to EUR10.3 million from EUR16.4 million.
On an adjusted basis, excluding exceptionals, pretax profit fell 15% to EUR24.1 million from EUR28.5 million, mostly due to "continued revenue declines".
Exceptional items in the year included a EUR7.0 million charge relating to assets in Northern Ireland, EUR4.1 million in restructuring costs, and EUR3.5 million in legal costs.
Revenue fell to EUR191.0 million from last year's EUR195.0 million primarily due to a 8.8% decline in total advertising revenue, a 6.3% reduction in circulation revenue, and a decline in commercial printing revenue of 6.2%.
Within advertising, publishing advertising revenue declined by 11% while digital advertising revenue fell 1.7%.
Meanwhile distribution revenue increased by 27%, primarily driven by two acquisitions completed during 2018.
Furthermore, operating costs rose to EUR182.0 million from EUR179.5 million.
"We have recorded a financial performance for 2018 ahead of market expectations and I can assure you despite the challenges facing the industry the board and senior executive team of your group are both determined and confident we are heading in the right direction to build a sustainable business for the future and to create shareholder value," Chair Murdoch MacLennan said.
"We face a tough journey over the next few years through a rapidly-changing media landscape, but we are determined to succeed in achieving our vision of a successful Independent News & Media that delivers for all of our many stakeholders."
Independent News & Media shares were untraded on Friday, last quoted at EUR0.065 each.