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 deals.com.au, 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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news