APN, the Australian publishing group in which Independent News & Media holds a 40 per cent stake, has reported a 14 per cent increase in pretax profits in the first half.

A strong performance from the company's newspaper and radio divisions in the first six months of the year, and an improved performance from its outdoor division, were the key factors behind the rise in profits to A$109.4 million (€68.09 million), APN said.

The company, which recorded a 10 per cent increase in turnover to A$652 million, said it expected to report double-digit profit growth for the year as a whole.

"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," chief executive Brendan Hopkins said.

But he added that the board expected to achieve double digit profit growth this year provided current trading conditions continued.

APN said it would pay an interim dividend of 8.8 cent per share, a 10 per cent increase.

Shares in Independent News & Media closed two cent higher at €2.49 following the release of the results, which were broadly in line with market expectations.

Profits after tax at APN were up by 17 per cent to A$66 million while the group invested A$7 million in new product initiatives.

The company, which publishes more than 100 newspapers in Australasia and is the region's largest radio broadcaster, said earnings before interest and tax in its publishing division grew by 15 per cent, reaching A$106.5 million.

The New Zealand division, which includes the New Zealand Herald newspaper, lifted earnings by 14 per cent to A$52.7 million.

APN's regional newspaper division, which includes 23 regional daily newspapers and more than 100 non-daily papers, posted a 16 per cent increase in earnings to A$53.8 million while the radio business was the strong performer, delivering a 28 per cent rise in earnings to A$35.3 million.

Following a restructuring, the group's outdoor division turned in an improved result, with earnings before interest and tax rising by 8 per cent to A$6.7 million.

However, the print division saw earnings decline by 27 per cent to A$2.9 million as excess capacity put pressure on margins.

APN, which has announced plans to buy back up to 47 million shares over a 12-month period, said it had repurchased six million shares in the first half at a cost of A$31.2 million.