26th Jun 2006 07:12
Independent News & Media PLC26 June 2006 2006 FIRST HALF PRE-CLOSE TRADING UPDATE Ticker: (Reuters) INWS.I / INWS.L and (Bloomberg) INWS ID / INWS LN Dublin/ London - June 26th 2006: Independent News & Media PLC ('INM' or the'Group'), the leading international media and communications group, today issuedits regular trading update in respect of the 6 month period ending 30th June2006, ahead of its close period. This update is intended to provide all marketparticipants with an overview of the Group's financial and operating performancefor the first half of 2006. INM's 2006 first half interim results are scheduledfor release on 19th September 2006. SUMMARY HIGHLIGHTS - H1 2006 * Group revenue expected to be ahead year-on-year by over 3%. * Group circulation revenues forecast to be up by over 3%. * Group advertising revenues forecast to be up by over 3.5%. * Operating costs continue to be well managed globally - despite European newsprint cost increases - reflecting the flow through benefits of prior years cost reductions. * Good savings in interest costs are anticipated, following the Group's significantly strengthened financial position. * Adjusted EPS expected to be ahead year-on-year by over 10%. REVENUES The Group continues to enjoy revenue growth across its geographically-balancedoperations (Australia, Ireland, New Zealand, South Africa and the United Kingdom) during the first half of 2006. The Group has seen good underlying growth in advertising and circulation revenues and expects to report total revenue growth for the 6 months to 30th June 2006 of over 3%. This solid performance reflects the continued strength of the Group's market-leadingpositions in diverse and growing economies, against a strong first half revenueperformance in 2005. * Advertising The Group's advertising revenues continue to show growth across the majoradvertising categories of ROP, colour display, retail, and classifieds. Firsthalf advertising revenues are expected to show underlying growth of over 3.5% -against strong comparisons. * Online Although modest in Group terms, online revenues continue to show gooddouble-digit advertising growth, particularly across the main classifiedpillars. The Group continues to identify new incremental revenue streams and weare increasingly active participants in this area. * Circulation The Group's circulation revenues are anticipated to increase by over 3%, basedon underlying volume and price increases. OPERATING COSTS The Group remains committed to being the low cost operator in each of itsmarkets and to sustaining the highest operating margins among its peer group.The Group expects to report continued underlying growth in operating margins in2006, as the flow through benefits of prior cost efficiency programmes are fullyrealised. GROUP DEVELOPMENTS: H1 2006 * In February 2006, our 20.8% owned Indian investment, JagranPrakashan Limited ('JPL') completed a successful initial public offering ('IPO')of shares on the Mumbai Stock Exchange. JPL publishes India's largest newspaper,which has the highest readership of any newspaper anywhere in the world. * Also in February 2006, the Group acquired a 20% investment inCashcade Limited, a leading UK online gaming company which owns thegetminted.com gaming portal providing services ranging from casino to bingo. * In May 2006, the Group completed the acquisition of 100% ofPropertyNews.com, the largest online property website on the island of Ireland.Already the clear market-leader in Northern Ireland, PropertyNews.com continuesto rapidly expand into the Republic of Ireland market. OUTLOOK The Group's Chief Executive Officer, Sir Anthony O'Reilly, stated: "As we confirmed at our AGM on 8th June, INM, as a global media organisation, isunique in that it operates market-leading newspaper brands in some of theworld's fastest growing economies. Our multi-media, multi-lingual andmulti-market strategy for growth, combined with our low cost ethos, gives usconfidence in our ability to deliver another year of superior earnings growth.Early results for 2006 are fully in line with expectations and we look forwardto another successful year of double-digit earnings growth." -- Ends -- For further information, please contact: Gavin O'Reilly Chief Operating Officer +353 1 466 3200 Donal Buggy Chief Financial Officer +353 1 466 3200 +--------------------------------------+--------------------------------------+|Investors and analysts |Media |+--------------------------------------+--------------------------------------+| | || | ||Mark Kenny/ Jonathan Neilan |Pat Walsh || | ||K Capital Source |Murray Consultants || | || | || | ||Tel: +353 1 631 5500 |Tel: +353 1 498 0300 || | ||Email: [email protected] | || | || | || | || |Rory Godson || | || |Powerscourt Media || | || | || | || |Tel: +44 207 236 5619 || | || | || | || | || | || |Paul Keary || | || |Financial Dynamics || | || | || | || |Tel: +1 212 850 5600 || | || | |+--------------------------------------+--------------------------------------+ About Independent News & Media PLC Independent News & Media PLC ('INM') is the leading international media andcommunications group, with interests in Australia, Ireland, New Zealand, SouthAfrica, the United Kingdom and most recently, India - operating in the areas ofnewspapers (national and regional), radio and outdoor advertising. The Groupmanages gross assets of €4.0 billion, revenue of €1.8 billion and employsapproximately 10,400 people worldwide. Further information is available on ourGroup website www.inmplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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