25th Feb 2011 07:00
APN NEWS & MEDIA LIMITED - RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2010
APN reports 9.5% growth in Net Profit to A$103.1 million
·; EBIT up 8.7%
·; Strong cashflow with dividend of 7 cents per share
·; Outdoor Division leads recovery with EBIT growth of 79%
Dublin/London - 25th February 2011: APN News & Media Ltd ['APN'], in which Independent News & Media PLC ['INM'] has a 31.6% shareholding, today released its Annual Result for the 12 months ending 31 December 2010. As of from 31 December 2010, INM no longer accounts for APN as a subsidiary undertaking and APN is accounted for as an associate undertaking by INM from that date.
Revenue was up 2.8% to A$1,059.1m, Earnings Before Interest and Tax (EBIT) was up 8.7% to A$205.4m and Net Profit After Tax (before exceptional items and discontinued operations) was up 9.5% to A$103.1m.
The Directors declared a partially franked final dividend of 7 cents per share, payable on 31 March 2011 (dividend payable to INM of A$13.4m). Together with the interim dividend of 5 cents per share, this represents an annual dividend of 12 cents per share (dividend payable to INM of A$23.0m).
2010 Annual Result
Unless otherwise stated, all figures are pre exceptionals and discontinued operations (AUD millions) | 2010 | 2009 | ∆% |
Revenue* | 1,059.1 | 1,030.7 | 3% |
EBITDA | 244.3 | 229.7 | 6% |
EBIT | 205.4 | 189.0 | 9% |
Net Profit After Tax | 103.1 | 94.2 | 9% |
Earnings per share | 17.2c | 17.0c | 1.2% |
Net Profit after exceptional items & discontinued operations |
93.8 |
92.6 |
1.2% |
*Revenue from continuing operations
APN Chief Executive Brett Chenoweth said: "As the incoming CEO of the Company, it is pleasing to report that the 2010 result marks a return to growth for APN News & Media. APN's revenue growth of 3% reflects the resilience of our diverse portfolio of media assets and is indicative of our markets emerging from the global financial crisis.
"A stand-out has been APN Outdoor, which has rebounded strongly. Elsewhere retail advertising is generally soft in Australia and New Zealand, however, an ongoing program of productivity improvements together with initiatives for growth, produced good increases in EBIT and Net Profit in 2010.
"APN remains a strong cash generator and our core businesses provide a robust platform for the next stage of growth as the economy strengthens and the advertising up cycle continues.
"APN has a unique portfolio of media assets in publishing, online, radio and outdoor advertising. We have clear market leadership on multiple platforms in many of our regions across Australia and New Zealand.
"APN is taking steps to ensure we are strategically positioned in the rapidly changing media landscape.
"We are increasingly looking at each of our businesses from a digital perspective and we are developing a clear set of priorities that will realign APN's direction in the coming months.
"These are:
·; To drive operational excellence across the entire organisation, delivering best in class operating performance while growing our revenue base;
·; To deliver earnings momentum in the existing business portfolio by driving initiatives and innovation. The product development pipeline is vibrant and there are many exciting new business opportunities, especially in digital segments; and
·; To grow, by taking bold but measured steps, to position APN where value and opportunity is emerging in the media landscape.
"It is an exciting time to be a media company. APN is well positioned to take advantage of the myriad of opportunities and we are ready for the challenge," Mr Chenoweth said.
Divisional Results
Revenue | EBIT | |||||
∆% on pcp | ∆% on pcp | |||||
(AUD millions) | 2010 | LocalCurrency | Reported | 2010 | LocalCurrency | Reported |
Australian Regional Media | 288.0 | 5.8% | 5.8% | 60.0 | 0.8% | 0.8% |
New Zealand Media | 320.1 | 1.7% | (0.4%) | 71.3 | 9.6% | 7.3% |
Australian Radio | 127.3 | 3.5% | 3.5% | 42.9 | (1.6%) | (1.6%) |
New Zealand Radio | 85.7 | 3.3% | 1.1% | 12.8 | (2.7%) | (4.6%) |
Outdoor | 238.0 | 7.2% | 3.8% | 28.9 | 85.8% | 79.4% |
Corporate | - | - | - | (10.5) | - | - |
Total | 1,059.1 | 4.4% | 2.8% | 205.4 | 9.6% | 8.7% |
Australian Regional Media produced solid revenue growth. This includes some recovery in classifieds as well as the benefit of introducing the Fairfax Media online classifieds joint venture from August. National advertising performed well, up 9%, whilst the fourth quarter was impacted by the weaker overall retail environment. Costs in this division were impacted by the new online classified alliance as well as the cost of investing in our new online products.
New Zealand Media had a solid year with revenue growth of 1.7% in local currency terms and EBIT up 9.6%, reflecting another strong performance on costs. The New Zealand Herald ended the year with gains in circulation and delivering 7 year highs in readership. Together with its online presence, the Herald brand now reaches 1.3 million New Zealanders each week. APN was a launch partner with Apple for the introduction of the iPad into New Zealand and the New Zealand Herald app has been downloaded by more than 33,000 users and is regarded as the industry leader in its category.
The radio markets in Australia and New Zealand recorded good progress, with the New Zealand radio market returning to solid growth in the December half. Both the Australian Radio Network and The Radio Network (NZ) have gained market share in recent months. Investment in new structures and programming are beginning to produce good returns.
This was confirmed in yesterday's radio survey from the Neilsen Company, which showed the market share of Mix 106.5 in Sydney jumped from 3.9% to 5.2%. The new breakfast show of Claire Hooper and Andrew Rochford increased from 2.7% to 4.6% which was the largest increase in share in the timeslot.
The Outdoor advertising market has responded strongly to the recovery from the global financial crisis. MOVE, the new audience measurement system is operational and there was strong performance from the Australian outdoor market in 2010. APN Outdoor performed well in all of its markets in Australia, New Zealand and Asia, with the entire division recording EBIT growth of 79% in 2010.
Growth Initiatives
APN's initiatives in the last 12 months to grow the revenue and asset base include:
·; launching the online classifieds Domain, MyCareer and Drive in APN's Australian publishing markets in July.
·; licensing the Pacific Magazine titles New Idea, Girlfriend, and That's Life in New Zealand in November.
·; launching GrabOne, APN's digital coupon business, in NZ in June and in Australia in October. GrabOne has been a very successful joint venture for APN and is leading the NZ market in this segment. Today APN advises it has lifted its shareholding in GrabOne to 75%.
·; renewing APN's New Zealand radio licences for a further 20 years.
·; securing a ten year deal with PMP Limited to outsource APN's specialty printing requirements and closing our Manakau plant.
Capital Management
During the period APN continued to deliver meaningful debt reduction and now has a Net Debt/EBITDA ratio of 2.7. Net debt is now A$657m, down from A$750m in December 2009.
In November, APN announced the extension of the majority of its existing bilateral bank facilities with approximately A$600 million of the Company's near term maturities being extended until 2014-15. In December, APN raised NZ$100 million of 2016 APN Media Bonds which were used to diversify the group's funding sources and repay bank debt. The average maturity of all APN's debt is nearly 4 years, with more than A$300m in undrawn commitments.
A final dividend of 7 cents per share has been declared, of which 2 cents is franked, payable on 31 March 2011.
The Directors note the continuation of the DRP, with a discount of 2.5%.
2011
APN Outdoor has continued to show strong growth over last year.
Year to date publishing in New Zealand is broadly in line with the prior period apart from retail advertising, which remains challenging, down 11% in January.
In Australia, APN's publishing business has been affected by the floods in Queensland. In particular, retail and real estate advertising, and the tourism market generally have been impacted significantly. January EBIT was down A$3m year on year. However, revenue has recovered in recent weeks to be almost in line with the prior year.
Radio, in both Australia and New Zealand, has continued the momentum it built during late 2010 to be ahead of the prior year in both revenue and earnings.
Overall trading is ahead of the prior year, with the exception of Australian Regional Media.
ENDS Friday, 25th February 2011
For further information, please contact:
Gavin O'Reilly Chief Executive Officer +353 1 466 3200
Donal Buggy Chief Financial Officer +353 1 466 3200
Karl Brophy Director Corporate Affairs and Content
Development +353 1 466 3200
Investors and Analysts |
Mark Kenny/Jonathan Neilan K Capital Source (Dublin) Tel: +353 1 663 3680 Email: [email protected] |
About APN
APN News & Media Limited [ASX, NZX:APN] is the largest media company in New Zealand, where it owns The New Zealand Herald, the country's largest newspaper. APN is the largest radio and outdoor advertising operator in Australasia as well as one of Australia's leading regional publishers. In Asia, the Company has market leading Outdoor positions in Hong Kong and Indonesia. APN has been listed on the Australian Stock Exchange since 1992, and on the New Zealand Stock Exchange since June 2004.
APN NEWS & MEDIA LIMITED
PRELIMINARY PROFITS ANNOUNCEMENT
A$000 | A$000 | €000 | €000 | |
31 December 2010 | 31 December 2009 | 31 December 2010 | 31 December 2009 | |
Revenue | 1,059,085 | 1,030,666 | 733,845 | 581,312 |
Operating Profit | ||||
- Continuing Operations | 202,442 | 185,699 | 140,273 | 104,737 |
- Exceptional Items | (5,995) | (5,482) | (4,154) | (3,092) |
Profit from Continuing Operations | 196,447 | 180,217 | 136,119 | 101,645 |
Net Finance Charge | (49,802) | (50,545) | (34,508) | (28,508) |
Share of Profit of Associates | 3,002 | 3,254 | 2,080 | 1,835 |
Profit on Ordinary Activities before Taxation |
149,647 |
132,926 |
103,691 |
74,972 |
Taxation | (30,061) | (14,624) | (20,829) | (8,248) |
Profit from continuing operations | 119,586 | 118,302 | 82,862 | 66,724 |
Loss from discontinued operations | (4,862) | (1,830) | (3,369) | (1,032) |
Profit for the year | 114,724 | 116,472 | 79,493 | 65,692 |
Profit Attributable to non-controlling interest |
(20,968) |
(23,844) |
(14,529) |
(13,448) |
Profit Attributable to Owners of the Parent Entity |
93,756 |
92,628 |
64,964 |
52,244 |
Continuing operations (cents) Basic/Diluted Earnings per Share |
16.4 |
17.0 |
11.4 |
9.6 |
Continuing and discontinued operations (cents) Basic/Diluted Earnings per Share |
15.6 |
16.7 |
10.8 |
9.4 |
|
Income Statements translated at Average Rates
Average Exchange Rate 2009 €1 = A$1.7730
Average Exchange Rate 2010 €1 = A$1.4432
APN NEWS & MEDIA LIMITED
GROUP BALANCE SHEET
A$000 | A$000 | €000 | €000 | |
31 December 2010 | 31 December 2009 | 31 December 2010 | 31 December 2009 | |
Current Assets | ||||
Cash and Cash Equivalents | 63,539 | 32,727 | 48,629 | 20,508 |
Trade and Other Receivables | 169,185 | 176,640 | 129,485 | 110,691 |
Inventories | 12,404 | 9,569 | 9,493 | 5,996 |
Derivative Assets | 263 | 424 | 201 | 266 |
Tax Assets | - | 754 | - | 472 |
Other | 26,417 | 23,753 | 20,218 | 14,885 |
271,808 | 243,867 | 208,026 | 152,818 | |
Assets Held For Sale | - | 15,072 | - | 9,445 |
Total Current Assets | 271,808 | 258,939 | 208,026 | 162,263 |
Non-Current Assets | ||||
Receivables | 4,186 | 4,224 | 3,204 | 2,647 |
Other Financial Assets | 26,172 | 27,130 | 20,031 | 17,001 |
Investments Accounted for Using the Equity Method |
41,152 |
39,190 |
31,495 |
24,558 |
Property, Plant and Equipment | 243,335 | 266,934 | 186,235 | 167,273 |
Intangible Assets | 1,573,998 | 1,604,436 | 1,204,652 | 1,005,412 |
Derivative Assets | 753 | 536 | 576 | 336 |
Retirement Benefit Asset | 1,518 | 1,178 | 1,162 | 738 |
Total Non-Current Assets | 1,891,114 | 1,943,628 | 1,447,355 | 1,217,965 |
Total Assets | 2,162,922 | 2,202,567 | 1,655,381 | 1,380,228 |
Current Liabilities | ||||
Trade and Other Payables | 119,729 | 118,327 | 91,634 | 74,149 |
Derivative Liabilities | 483 | 1,494 | 370 | 936 |
Interest Bearing Liabilities | 25,765 | 20,280 | 19,719 | 12,708 |
Current Tax Provisions | 5,574 | 6,267 | 4,266 | 3,927 |
Provisions | 10,432 | 8,938 | 7,984 | 5,601 |
161,983 | 155,306 | 123,973 | 97,321 | |
Liabilities Directly Associated With Assets Held For Sale |
- |
10,356 |
- |
6,490 |
Total Current Liabilities | 161,983 | 165,662 | 123,973 | 103,811 |
Non-Current Liabilities | ||||
Payables | 2,596 | 3,272 | 1,987 | 2,050 |
Derivative Liabilities | 2,460 | 66 | 1,883 | 41 |
Interest Bearing Liabilities | 694,328 | 762,700 | 531,400 | 477,942 |
Deferred Tax Liabilities | 106,455 | 113,310 | 81,475 | 71,006 |
Provisions | 6,895 | 1,021 | 5,277 | 640 |
Total Non-Current Liabilities | 812,734 | 880,369 | 622,022 | 551,679 |
Total Liabilities | 974,717 | 1,046,031 | 754,995 | 655,490 |
Net Assets | 1,188,205 | 1,156,536 | 909,386 | 724,738 |
Equity | ||||
Contributed Equity | 1,045,999 | 1,024,815 | 800,550 | 642,196 |
Other Reserves | (75,796) | (43,550) | (58,010) | (27,290) |
Retained Losses | (8,170) | (48,172) | (6,253) | (30,187) |
Total Parent Entity Interest | 962,033 | 933,093 | 736,287 | 584,719 |
Non-controlling Interest | 226,172 | 223,443 | 173,099 | 140,019 |
Total Equity | 1,188,205 | 1,156,536 | 909,386 | 724,738 |
Balance Sheets translated at Closing Rates
Closing Exchange Rate December 2009 €1 = A$1.5958
Closing Exchange Rate December 2010 €1 = A$1.3066
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