Profit Before Tax increased 14 per cent to A$109.4 million, on an increase in Group Revenue of 10 per cent to A$652 million, and an increase in EBIT, before New Product Initiatives (NPI’s), of 15 per cent to $147.5 million. Basic earnings per share were 13.7 cents, an increase of 15 per cent.
The Directors have declared a 10 per cent increase in the interim dividend to 8.8 cents per share. APN Chief Executive Brendan Hopkins said: “We believe these are a high quality set of numbers. Key to the result was the strong first half performance from our Newspaper and Radio Divisions and an improved performance from Outdoor.
“The results are after significant investment in a range of NPI’s totaling over $7 million. It is
pleasing to report that two of these initiatives, Canvas and Tribe Outdoor, are now nearing
profitability. The Herald on Sunday, The Aucklander and Buspak Hong Kong represent our
principal initiatives in the first half and are expected to continue in their investment phase for another 12 to 18 months.
“Early results for the second half are as anticipated with underlying growth rates moderating as trading is set against the strong 2004 second half comparisons.
“The Board of APN continues to believe that, providing current trading conditions continue, the objective of double digit profit growth for the year as a whole will be achieved.”
New Zealand National Publishing (NZNP)
The NZNP Division was formed in 2004 to enable the Group to co-ordinate a strategy for the
Auckland market as a whole, New Zealand’s largest metropolitan market.
The division includes the New Zealand Herald, The Aucklander (launched in October 2003), the Herald on Sunday (October 2004), and some of New Zealand’s best read magazines.
Readership penetration of APN products in the Auckland market has increased from 56 per cent in 2002 to 68 per cent at June 2005 reflecting the success of the co-ordinated strategy. Excluding NPI’s, principally the Herald on Sunday and The Aucklander, the Division grew revenue by 9 per cent and increased EBIT by 14 per cent. Overall revenues, including NPIs, grew 12 per cent.
Each week The New Zealand Herald is read by 70 per cent of Aucklanders aged 15+, a total readership of 1 million people. The Weekend Herald is New Zealand’s best read newspaper with a readership of 679,000.
The launch of the Herald on Sunday in October 2004 extended The New Zealand Herald’s
franchise to seven days a week. In its first six months, circulation has exceeded expectations,
reaching 101,355 in its first audit, with readership of 363,000. Readership of Sunday newspapers in Auckland overall has grown by 58 per cent since the launch of the Herald on Sunday. 93 per cent of Herald on Sunday subscriptions are now fully-paid.
The Aucklander is New Zealand’s largest circulating free weekly title and has just been expanded into seven zoned editions. The Aucklander has a readership of 453,000 and has now attained advertising market leadership in the food sector and is making good progress in the areas of retail and employment.
The Listener and the New Zealand Woman’s Weekly magazines both grew subscription levels in the first half. Creme, New Zealand’s fastest growing teen magazine was acquired during the year.
The Auckland market growth has moderated in recent weeks particularly in classified lineage. In contrast, classified display, national and retail advertising continues to show volume growth.
Regional New Zealand continues to show good growth across all advertising categories.
The recent moderation in classified lineage follows on from three years of strong growth. The forthcoming election (September 17th) may also be a contributing factor affecting the Auckland market.
