APN News & Media upbeat despite underwhelming interim result

Posted by Erina Lin on August 20, 2010 at 11:33 AM

APN News & Media is upbeat for improving advertising markets, despite an underwhelming half-year result, The Australian reported.

APN News & Media saw its shares close 9 percent lower after it posted net profit of AU$40 million for the first half of the year.

"They missed on the headline numbers but I think the underlying message is fairly robust," Citigroup analyst Justin Diddams said.

APN's outdoor revenue was up 17.7 percent to A$109.4 million from continuing operations, but it lost two bus advertising contracts in New Zealand and Hong Kong as the deals were taken in-house.

However, analysts were confident about the outlook for its overall business in general, as well as its regional papers and radio assets in Australia.

In Australian, regional media revenue increased 7 percent to $140.5 million, but in New Zealand, media revenue was flat at $156.4 million.

According to chief executive Brendan Hopkins in a company statement, "In Australia we are already seeing our markets recovering from the global financial crisis. The recovery in New Zealand is yet to achieve the same pace, however it is pleasing to report that the second quarter was significantly better than the first quarter."

Hopkins also expressed positive outlook for the later half of the year. "Across all of our operations, we believe the second half will continue the trends seen in the second quarter and anticipate a strong end to the year. The fourth quarter is traditionally our best period and forward bookings are encouraging," he added.