Irish media group Independent News & Media reported a fall in first-half earnings on Monday, in line with market forecasts, but said it hoped to benefit from any improvement in a sluggish advertising market.
The media industry worldwide has been hit by a sharp fall in advertising revenues as companies cut marketing spending in response to the global economic downturn.
Independent, whose primary publishing interests are in Ireland, Britain, Australia, and South Africa, reported pre-tax profit of 51,7-million euros, down from 57,6-million euros in the same period last year.
Earnings per share before exceptional items and amortisation were 6,31 euro cents, down from 7,68 cents.
Operating profit slipped to 102,7-million euros from 109,3-million largely due to the impact on Independent’s South African operations of a nearly 40%depreciation of the currency — a ”once-off factor”, according to the company.
Turnover fell 21-million euros to 635,1-million euros.
Chief Operating Officer Gavin O’Reilly said he believed the company had performed well against its peers in some very tough conditions.
”We’re happy with the results — we beat market expectations and we continue to get a disproportionate take in each of our markets,” he said, adding that the result just exceeded the consensus of media analysts’ profit forecasts.
”We’ve weathered the storm — and it has been a storm — and I think, looking forward, we anticipate that we will continue to outperform the market.”
O’Reilly said Independent had no reason at this stage to change its forecast for full-year earnings of between 12 and 13 cents per share.
”Although, obviously that’s dependent on the advertising market,” O’Reilly said.
He said there were signs of ”some green shoots” in the advertising industry in Ireland, where Independent is the market leader, and some ”very positive advertising growth” in its operations in the southern hemisphere. – Reuters