19th May 2015 07:00
Independent News & Media PLC
Interim Management Statement
Market leading newspaper group with continued digital advertising growth; APN divestment significantly strengthens balance sheet
Dublin and London, 19 May 2015: Independent News & Media PLC (INM ID, INM LN), the leading newspaper and media group across the island of Ireland, today issues the following Interim Management Statement covering the period from 1 January 2015 to 1 May 2015 inclusive for the Continuing Group.
· APN shareholding divested for €115.8m, proceeds will be used to clear Group debt in its entirety
· Total Group revenues declined by 1.0%
· Total advertising revenue growth of 2.9%
· Digital advertising revenue growth of 45.6%, offsetting the decline in publishing advertising revenue
· Total circulation revenues declined by 4.2%
· Continued reduction in operating costs with a particular focus on efficiencies, whilst investing in our businesses where appropriate
· Further modernisation of INM into an agile media organisation to capitalise on opportunities within our constantly evolving sector
Market conditions have continued to improve over the period, delivering a positive impact on advertising revenue growth and profitability. Several publishing advertising categories have recorded year-on-year positive progress including Motors, Holidays/Travel, Magazines and Features/Supplements.
There has been strong growth in digital advertising revenue, with a continuation of the positive trajectory reported in the 2014 full year results, validating the unique audience reach INM offers advertisers. This growth has been driven by the continued shift of advertising budgets to digital, the increased monetisation of advertising space via new technology platforms and the roll out of new digital products.
Overall, Group revenues have been adversely impacted by the continued declines in circulation revenues. However, these declines have been offset by continued cost savings which have mitigated the impact on EBIT.
2015 has started well and we remain confident that our full year performance will be in line with expectations.
Sale of APN Shareholding
On 19 March 2015, the Group announced the sale of 191,541,073 ordinary shares in APN, being the Group's entire holding in APN (representing 18.61% of the issued share capital of APN).
The sale is being executed in two tranches - Tranche 1 was completed in March 2015, whilst Tranche 2 will complete on or around end-May 2015 but in any event no later than 3 June 2015. Net proceeds will be used to clear Group debt in its entirety, significantly strengthening the Group balance sheet.
- ENDS -
NOTE REGARDING FORWARD LOOKING STATEMENTS
Some statements in this announcement are forward looking. They represent expectations for our business and involve risks and uncertainties. We have based these forward-looking statements on our current expectations and projections about future events. We believe that our expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases are beyond our control, our actual results or performance may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this document and no obligation is undertaken, save as required by law or by the Listing Rules of the Irish Stock Exchange and/or the UK Listing Authority, to reflect new information, future events or otherwise.
For further information, contact:
MEDIA INVESTORS & ANALYSTS
Victoria Keogh Heneghan PR + 353 1 660 7395 (office) + 353 87 234 9707 (mobile)
| Robert Pitt Group Chief Executive Officer Independent News & Media PLC +353 1 466 3200
Ryan Preston Group Chief Financial Officer Independent News & Media PLC +353 1 466 3200
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