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

 


APN earnings lag 2013 on flat ad agency spending

APN earnings lag 2013 on flat ad agency spending, shares fall

By Paul McBeth

May 8 (BusinessDesk) - APN News & Media, the Australian publisher of The New Zealand Herald newspaper and owner of The Radio Network, says earnings are lagging last year with flat advertising spending falling short of expectations and weighing on its publishing arms.

Chief executive Michael Miller told shareholders at the annual meeting in Sydney group earnings before interest, tax, depreciation and amortisation “is slightly behind where we were at this time last year” due to moribund spending by advertising agencies. APN generated ebitda of A$65 million in the six months ended June 30, 2013 before exceptional items, for annual earnings of A$162.8 million in 2013.

“As an advertising industry, agency expenditure in both Australia and New Zealand has been flat and as a result our agency revenues have been below expectations, especially in publishing,” Miller said. “This has been partially offset by stronger direct and local advertising revenues, as well as improving circulation trends.”

According to Advertising Standards Authority figures, New Zealand’s total newspaper advertising revenue dropped 8.5 percent to $494 million in 2013, while online ad turnover jumped 29 percent to $466 million. Radio ad spending gained 7.7 percent to $267 million.

APN’s dual-listed shares dropped 7.1 percent to 63.2 Australian cents on the ASX, and were unchanged at 73 cents on the NZX.

The media group bought out US partner Clear Channel in Australian Radio Network and TRN in New Zealand for A$246.5 million this year, rounding out an overhaul of its portfolio to ditch underperforming assets and shore up its balance sheet.

Miller said 55 percent of the company’s earnings are expected to be derived from growth assets, identified as radio, outdoor advertising and digital media.

“We have furthered our investment in ARN and TRN because we are confident that radio will continue to grow as a medium and that ARN and TRN will continue to grow market share,” he said.

APN aims to reduce publishing costs by A$20 million this year, and chairman Peter Cosgrove said publishing will continue to play an important role for the company, despite not being seen as a growth asset.

“We will explore all options with other industry players in a range of areas including printing and distribution to further reduce costs and extend their lives,” Cosgrove said.

Miller said the New Zealand publishing unit is focused on new revenue generating opportunities, and the company is committed to introducing a digital subscription model for The New Zealand Herald.

“From our close watch of international markets, we are encouraged by recent US results which have shown that the newspaper industry there has had two years of growth in newspaper circulation revenues,” he said.

“While most of our businesses outperformed their markets in 2013, we have identified opportunities for them to work more closely together, particularly in New Zealand, and be open to greater collaboration with other media companies in order to provide a wider range of options to our clients and to win a larger share of the advertising market,” he said.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news