The economic recession in New Zealand and the 12-year high interest rates in Australia are curbing demand for radio and TV advertising, both playing a major part in APN News & Media Ltd.'s announcement that its profit was down for the first half, Bloomberg reported.

Radio and television ads contribute nearly 95 percent of the Australia and New Zealand-based publisher's sales, Bloomberg reported Tuesday.

“Our New Zealand businesses have been affected throughout the period by the economic slowdown, with a number of our major advertisers cutting back advertising plans. These are a good set of results against the background of the global credit crisis,” said Chief Executive Officer Brendan Hopkins, according to Bloomberg.

APN made the announcement Tuesday that its net income declined from AU$72.5 million, or 14.9 cents a year earlier, to AU$71.9 million (US$63 million), or 14.7 cents a share, in the six months ending June 30.

According to Hopkins, the company will depend on the December quarter to achieve its profit goals for this year, a period when APN typically gets about one-third of its annual earnings, Bloomberg reported.

“The result and guidance implies downside risk to our full year earnings estimates,” said Digby Gilmour, a Citigroup analyst, who rates the stock “buy” with a target price of AU$4.26, and expects its annual earnings of AU$172 million, according to Bloomberg.