APN NEWS & Media chairman Gavin O’Reilly told shareholders yesterday that its earnings before interest and tax (Ebit) for the first half of this year would be 15-20 million Australian dollars (€11-14.6 million) below the same period of 2010 due the impact of the recent floods in Queensland and earthquakes in New Zealand.
“In response, APN has commenced a round of restructuring initiatives in our publishing operations,” Mr O’Reilly told the annual meeting of the media group.
APN reported an Ebit of 87.1 million Australian dollars in the six months to the end of June 2010. Mr O’Reilly said that despite “some improvement” in Queensland, earnings were still being impacted by the “repercussions” of the earthquake on an “already weak New Zealand economy”.
Its outdoor and radio divisions continue to trade ahead of last year, he said.
Mr O’Reilly, who was re-elected as APN’s non-executive chairman yesterday, said trading is “anticipated to improve in the second half, although it is not expected” that the full-year result will match its earnings last year.
APN recorded an Ebit in 2010 of 205.4 million Australian dollars.
Independent News & Media, which Mr O’Reilly heads, is APN’s biggest shareholder. APN’s annual report shows it paid INM $1.115 million last year for various services. These included travel and ancillary expenses, provision of unlimited live editorial copy, services of directors, and for advisory work on a “range of matters”.
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