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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news