Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Bulk of APN cost savings this year to come from NZ media

Bulk of APN cost savings this year to come from NZ media, shareholders told

May 2 (BusinessDesk) - APN News & Media, the Australasian publisher of the NZ Herald, is aiming to cut A$25 million of costs this year, with the bulk to come from its New Zealand operations, shareholders were told at the annual meeting in Sydney.

New Zealand Media chief executive Martin Simons, said APN’s major cost restructuring projects have been completed, with the outsourcing of editorial and advertising production, the centralisation of advertising sales and editorial content, and the sale on non-core titles.

Some A$18 million of cost saving are being targeted for 2013 and a further A$10 million in 2014, according to Simons’ presentation materials. APN’s NZ Media headcount has about halved in the past five years to 1,037 currently.

APN posted an A$456 million loss in 2012, reflecting writedowns on the value of goodwill and its newspaper mastheads as it grapples with what is a global struggle for newspapers facing declining advertising sales and more online competition.

Its response in New Zealand has included relaunching the Herald in compact format, moving regional dailies to compact format and morning delivery, putting the Listener behind a paywall and preparing to put other titles behind metered paywalls. The company was also widened its portfolio of digital ventures, moving to 100 percent of daily deals site GrabOne last year and taking a controlling stake in online retailer brandsExclusive.

Chairman Peter Cosgrove told the meeting that APN has recorded mixed results in the first quarter of 2013.

Cost savings at NZ Media have more than made up for a decline in revenue which is itself moderating as the New Zealand economy improves. Pretax earnings are tracking slightly ahead of the same time last year.

Australian Regional Media “had a tough quarter” with a 13 percent decline in revenue, reflecting a slowdown in the mining sector, falling government advertising and the impact of floods.

Australian Radio Network “continues to perform strongly, with increases in revenue and market share,” he said. Radio Network in New Zealand gained market share in the first quarter. Its outdoor advertising businesses are “performing well” while all digital ventures have produced strong revenue growth and will contribute to operating earnings this year, he said.

The company is continuing its hunt for a new chief executive after Brett Chenoweth resigned earlier this year after major shareholders Independent News & Media and Allan Gray Australia opposed a planned capital raising.

The shareholder lobbying caused a boardroom stoush which installed Cosgrove as chair and saw the departure of his predecessor Peter Hunt and independent directors Melinda Conrad, John Harvey and John Maasland. Independent director Kevin Luscombe also retired in April as planned

Shares of APN fell 2.5 percent to 38.5 cents on the ASX and have gained 68 percent this year. The shares are rated ‘underperform’ based on the consensus of 11 analysts polled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news