29th Jun 2005 07:00
Independent News & Media PLC29 June 2005 2005 FIRST HALF PRE-CLOSE TRADING UPDATE ---------------------------------------- (ticker: INWS.I and/ or INWS.L) Dublin/London -- 29th June 2005: The Board of Independent News & Media PLC('Independent' or the 'Group') today issued a trading update in respect of the 6month period to 30th June 2005. This is intended to provide investors andanalysts with an overview of the Group's financial and operating progress andperformance in advance of the Group's 2005 interim results announcement, whichis currently scheduled for release on Wednesday, 14th September 2005. REVENUESThe Group continues to enjoy sustainable revenue growth across each of its fiveprimary markets - being Australia, Ireland, New Zealand, South Africa and theUnited Kingdom. Accordingly, Independent will report year-on-year volume andrate growth in both advertising and circulation revenues. AdvertisingGroup advertising revenues, within the period, are expected to show a highsingle-digit increase in constant currency terms. Independent expects that firsthalf 2005 advertising revenues will be in line with current market expectations.In addition - and in spite of some recent negative market commentary by somecompetitors in the UK market in particular - forward bookings remain positive inall five markets, reflecting the Group's uniquely broad-based strength and assetdiversity across five primary markets. CirculationGroup circulation revenues, within the period, are expected to show a lowsingle-digit increase in constant currency terms. The increase reflects acontinuing focus on profitable, proactive volume and cover price initiatives.Continuous product innovation, new product launches and increased marketingspend are contributing to the expected level of circulation growth. OPERATING COSTSThe Group is dedicated to being the low cost operator in all the markets inwhich it operates. Consistent with that, Independent's stated objective is tosustain the highest operating margin of its peer group, and expects to reportincreased operating margins for the period. The expected benefits of the prioryear cost reduction and re-structuring initiatives will be reflected in theGroup's full year 2005 financial performance and beyond and will more thanoffset additional product development costs and increased marketing. GROUP DEVELOPMENTSOn 24th May 2005, Independent received formal, statutory Indian Governmentapproval for the acquisition of 26% of the leading Indian newspaper publisher,Jagran Prakashan Private Ltd ('JPPL'). JPPL publishes the Hindi-languagenewspaper Dainik Jagran, India's largest read daily newspaper (read by over 21.2million people, as per the latest NRS survey, June 2005) representing one of thelargest daily readerships of any newspaper worldwide. On 8th June 2005, the Group concluded its disposal of its shareholding in iTouchplc to For.side.com Co. Ltd. of Japan for €100 million. Full cash proceeds fromthis disposal have already been received, with the consideration received beingused for general corporate purposes and to further strengthen the Group'sincreasing financial flexibility. On 16th June 2005, Independent entered into a 15-year contract print agreementwith News International (the main UK subsidiary of News Corporation; NYSEticker: NWS.N) to print The Sun and the News of the World from the Group's majornew printing facility in Belfast. The new agreement starts in 2007, with theexisting print arrangements remaining in place until then. This Belfast printfacility - which is part of the Northern Ireland division - is now the largestsuch newspaper printing and production operation on the island of Ireland, andwill - in our view - be the most efficient operation of its type in Ireland. OUTLOOKIndependent's chief executive, Sir Anthony O'Reilly added: "As we emphasised atour AGM on June 8th, Independent's compelling mix of strong franchises andleading market positions in diversified and growing markets will deliver astrong first half financial performance. The Group remains happy with currenttrading. Good revenue conditions prevail and costs remain well-managed. Assuming a continuation of these favourable trends, the Board remains confidentof, and expects, a meaningful improvement in underlying profit for the full yearof 2005, in line with current market expectations." -- Ends -- For further information, please contact: Gavin O'Reilly Chief Operating Officer +353 1 466 3200Donal Buggy Chief Financial Officer +353 1 466 3200 Investors and analystsMark Kenny K Capital Source +353 1 631 5500 [email protected] MediaPat Walsh Murray Consultants +353 1 498 0300Richard Oldworth/Mark Edwards Buchanan Communications +44 20 7466 5000 About Independent News & Media PLC----------------------------------Independent is a leading international media group with its primary operationsin Australia, Ireland, New Zealand, South Africa and the United Kingdom in theareas of newspapers, radio and outdoor advertising. The Group manages turnoverin excess of €1.8 billion and gross assets of €3.9 billion from its corebusiness activities. Further information is available on our Group websitewww.inmplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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