13th Mar 2014 10:29
LONDON (Alliance News) - Independent News And Media PLC Thursday said it swung to profit in 2013, even as revenue declined, as it posted exceptional benefits in 2013 while exceptional costs in 2012 did not re-occur.
The publisher of regional newspapers in Ireland, Australia and South Africa posted a pretax profit of EUR253.7 million, versus a pretax loss of EUR291.3 million.
In 2013, the company posted an exceptional benefit of EUR215.3 million, consisting of a EUR111.4 million benefit resulting from the reconstruction of the company's benefit pension scheme, a EUR142.0 million debt write off of its bank facilities, a EUR12.1 million write back of back-end bank fees, and a EUR28.0 million gain from the sale of INM South Africa.
In the previous year the company posted exceptional costs of EUR285.9 million, including a non-cash impairment charge of EUR117.8 million on assets, property, plant and equipment of its Irish operations, and a EUR139.1 million charge from its share in APN News & Media Ltd.
Removing these exceptional costs and gains, INM posted a pretax profit of EUR25.5 million, up from EUR10.4 million in the previous year. Although revenue declined to EUR322.4 million from EUR345.1 million, INM improved its operating margin to 10.1% from 9.5%, and it delivered cost savings of EUR26 million.
INM said it had seen an improved trend in advertising revenue in the second half of the year, which had improved further in the year to date in 2014. Print advertising revenue declined to EUR73.1 million for EUR82.6 million. With the exception of property advertising, all print advertising categories were down.
INM has been focusing its efforts towards the growing digital sector, as traditional print continues to struggle. Whilst revenue from the sales newspapers and magazines, and from distribution and commercial printing activities declined, digital advertising revenues grew by 12% to EUR9.3 million from EUR8.3 million.
INM said that 2014 would be an investment phase in its digital business, which it said it has grown ad revenue in the year to date by 15%.
The company completed its financial restructuring during the year, reducing its net debt to EUR95.3 million from EUR327.1 million in the previous year, and extended its debt maturity profile to 2018.
"2013 was a defining year for INM. The Group's balance sheet has been significantly restructured and INM now has the capital structure to support our continued repositioning and ongoing digital investment programme," said Chief Executive Vincent Crowley in a statement.
Crowley is scheduled to step down in May, and the company is looking for a successor.
INM paid no dividend for either 2013 or 2012.
Shares in INM were trading up 4.1% at 0.16 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Independent News & Media