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


APN exits brandsExclusive after writing down goodwill

APN exits brandsExclusive after writing down goodwill on 1 ½-year investment

Feb. 12 (BusinessDesk) - APN News & Media, the Australian publisher of the New Zealand Herald newspaper, agreed to sell its unprofitable brandsExclusive online shopping site, having slashed the value of goodwill on a business acquired in 2012.

E-commerce group AussieCommerce, which operates sites including, will pay A$2 million cash and 8 percent of its own stock for brandsExclusive, APN said in a statement. The sale is to be concluded today.

The Sydney-based media company acquired 82 percent of the business in 2012 for A$36 million upfront and a further payment tied to earnings targets. It booked an A$20.5 million impairment charge to write down goodwill in the first half of 2013, citing increased competition in online retailing. While sales rose 30 percent in that period, it recorded a pretax loss of A$2.6 million.

AussieCommerce “provides the necessary scale for brandsExclusive to prosper in the increasingly competitive online retail environment,” said APN chief executive Michael Miller
“This deal is in the best interests of both brandsExclusive and APN shareholders.”

The sale marks a further step in APN’s plan to shrink back to “core media and digital businesses,” having sold its 48 percent stake in APN Outdoor to joint venture partner Quadrant Private Equity for about A$69 million last year. Its other digital assets include the GrabOne daily deal site and iNC Digital Media, which offers online market and analytics services.

Last month, the Commerce Commission approved the sale of APN’s magazines NZ Woman’s Weekly, Simply You, Simply You Living, New Zealand Listener and Crème to Germany’s Bauer Media Group, leaving it with New Idea, That’s Life and Girlfriend magazines published under licence from Pacific Magazines Group Australia.

Shares of APN were last at 43 Australian cents on the ASX and have gained about 46 percent in the past 12 months, more than twice the gains of the S&P/ASX 200 Index. The shares have fallen from about A$2.50 in mid-2010 and are rated ‘hold’ based on the consensus of 11 analysts polled by Reuters, with a median price target of 36 Australian cents.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news