Independent News & Media Profit Slides In Tough Industry Climate

9th Mar 2018 09:33

LONDON (Alliance News) - Irish media company Independent News & Media PLC reported on Friday a sharp drop in profit for 2017 on decreased revenue in a generally difficult environment for the media sector.

Some of INM's titles include the Irish Independent, the Evening Herald, and the Belfast Telegraph in Northern Ireland.

INM's statutory pretax profit plunged to EUR12.5 million from the EUR50.3 million recorded in 2016. On an adjusted basis, which removes exceptional items, it fell to EUR24.6 million from EUR40.2 million.

A major impairment during 2017 was that of the Belfast Telegraph masthead, at a cost of EUR12.7 million.

Group revenue fell 9.4% to EUR293.0 million, driven by a decline in advertising revenue of 11%, a circulation revenue drop of 8.4%, and distribution revenue fall of 9.5%. Digital revenue was up 1.0% on the year before, excluding 2016's extra week.

Digital growth, INM said, was fuelled by expansion of classified platforms such as CarsIreland.ie. Audience on its flagship news platform independent.ie grew 23% year-on-year, averaging over a million unique users a day in the second half of 2016. During the coverage of storm Ophelia in October 2017, it said, over 2.5 million people visited in one 24 hour period.

The company said it is working with Ernst & Young to develop a strategic plan going forward, which it said will involve reshaping its business model in the face of wider challenges confronting the media industry.

Looking to 2018, INM expects further difficult conditions as key revenue streams such as advertising, circulation, and distribution continue to decline. Digital advertising revenue will continue to come under pressure from the likes of Facebook and Google, INM added.

Chairman Murdoch MacLennan, who joined the firm on Wednesday, said: "I have just taken on the role of chairman of the group in the last few days but I am well aware of the challenges currently facing news and online publishers all over the world. While our group experienced difficult trading conditions over the course of 2017, I am confident that a robust development strategy is being put in place, with the assistance of EY, which will open a pathway for us to identify a successful future for our business.

"INM's focus over the coming year will be on implementing that new strategy, while at the same time protecting our existing core print and online business. Reassuringly, the group has maintained its leadership position in the print publishing market and with independent.ie we have Ireland's most trusted and most visited news website."

Shares in the company were untraded on Friday at EUR0.105 each.

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