International media and communications group Independent News & Media on Tuesday announced its interim results, stating that strong underlying trading performances across the group, especially South Africa, “delivered a 4,9% improvement in operating profit before exceptionals”.
The South African group delivered “another excellent performance”, benefiting from the ongoing strength in the economy, the company added.
“The strong trading environment continued to be driven by buoyant consumer
spending [underpinned by the burgeoning middle class] and all confidence
indicators, particularly retail activity, remained positive.
“Revenue growth of 16,4%, driven by a strong advertising market and supported by an ongoing vigilance around containing fixed overheads, delivered a 22% increase in operating profits to €18,3-million. Operating margin improved to 15% from 14,3% in 2005.
“All of the group’s titles performed strongly in a very favourable advertising market and recorded improvements in market share in both the display and classified categories.”
Circulation copy sales of each of the 16 titles also performed well in the January to June 2006 period, despite competitive market conditions, the company said.
Circulation revenue growth was driven by the further strong increase in copy sales of Isolezwe — the group’s Zulu language newspaper launched in 2003 — which have increased to over 94&000 copies per day, up approximately 25% on the
prior comparative period.
The company noted that in addition, the group’s weekly title, Post, aimed at the Indian market, grew its sale by 5,2% on the prior year. The Daily Voice — which was launched in March 2005 and is focused on the popular end of the mass-market — has gained a very strong foothold in the Cape Town market, providing a solid platform to extend its geographic reach beyond Cape
Town.
The group added that the wholly-owned magazine division (Condé Nast Independent Magazines), in a very competitive trading environment, produced a
strong first half trading profit improvement, underpinned by Glamour, in its second year, now selling in excess of 100 000 copies a month.
The 50%-owned Outdoor Advertising division, Clear Channel Independent,
reported a 23% increase in operating profit, benefiting from the strong local
trading environment and a much improved contribution from its 13 African
operations, the company said. – I-Net Bridge