APN News posts loss

Wednesday 25th February 2009

APN News & Media, the company that's 39.1% owned by Ireland's Independent News & Media, posted a full-year net loss after writing down the value of its New Zealand businesses.

The net loss was A$24 million in 2008, from a profit of A$167 million in 2007, the company said in a statement today. It took an impairment charge of A$164 million against the assets acquired with the takeover of Wilson & Horton in 2001, including the New Zealand Herald.

The past year constituted the "most challenging trading conditions that APN has faced as a listed company," chief executive Brendan Hopkins said today. In New Zealand, the recession curbed advertising revenue and increased costs as the company restructured.

The announcement comes two days after rival Fairfax Media posted a first-half loss on weaker ad sales and a writedown of its mastheads and media licenses in what it called "an exceptionally difficult economy." APN said 2009 net profit would be about A$120 million, down from A$140 million before one-time items last year.

Shares of APN climbed 7% to A$1.22 on the ASX and have declined 74% in the past 12 months.

The company will pay a final dividend of 12 cents a share, bringing total payments for the year to 22.5 cents.

Hopkins said the next 12 months are likely to be tough though the company will benefit from having a diversified revenue base including radio stations and online businesses.

By Jonathan Underhill

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