Independent News & Media returns to profit

Posted by Leah McBride Mensching on August 27, 2010 at 9:55 AM

Independent News and Media's newspapers have returned to pre-tax profits after selling loss-making titles, The Irish Times reported today. Revenues for the first half of the year reached €656.5 million, up 7.8 percent, as operating profit increased 29.2 percent, to €94.6 million. Earnings before taxes, amortisation and depreciation were up 26.1 percent, to €115.6 million.

The Ireland-based INM sold its UK Independent and Independent on Sunday titles in April, and also sold its remaining share in India-based Jagran Prakashan Limited media group, lowering its net debt by €360.1 million in the period from June 2009 to June 2010. INM reported pre-tax losses of €31 million for the year of 2009, according to MediaGuardian.

Pre-tax profits were at €53.3 million, up more than 39 percent compared to a year prior, RTE.ie reported. Advertising is picking up gradually, and the group expects healthy profit growths for the full year, INM COO Vincent Crowley told RTE.

"Assuming a continuation of these positives, we are targeting an improved operating performance for the year, in line with current market expectations," INM CEO Gavin O'Reilly said in a statement, according to Reuters UK. (Note: O'Reilly is also president of WAN-IFRA, of which this blog is part).

INM's Australasia branch, which includes the New Zealand Herald, saw revenues grow 5.4 percent year-on-year, to €332 million; its South African newspaper operation saw revenues down 2 percent, to €100 million; and its Irish group, which includes the Irish Independent and Belfast Telegraph, saw revenue drop by 3.3 percent, to €204 million, MediaGuardian reported.