Independent News & Media today posted a 50 per cent jump in first-half pretax profit, saying the positive trend had continued into the second half of the year.
Pretax profit rose to €78.8 million in the first six months of the year, up from €52.4 million in the same period of 2003.
Analysts at NCB Stockbrokers had expected Independent's pretax profit to come in at €79.8 million, while Davy stockbrokers had seen it at €76 million.
Turnover from continuing operations was up 14 per cent at €736.9 million as the company said advertising sales rose an underlying €14.3 per cent, while circulation revenues were up 10.4 per cent.
Circulation revenues for the group's Irish operation grew by 3.4 per cent, which the company said reflected the successful launch of the compact edition of the Irish Independent.
"That positive trading position has continued into the second half, and, as such, your board remains confident of further improvements in underlying profitability for 2004, at least in line with market consensus forecasts," the company said in a statement.
Earnings per share (EPS), adjusted to exclude exceptional items and amortisation, were up 8.2 per cent at 6.59 cents, while the interim dividend per share rose 9.1 per cent to 3 cents.
The UK operation recorded revenue of £68.7m sterling in the first six months of 2004, an increase of eight per cent.
The group said the combination of growing revenues and good cost control produced a record operating profit of £5m, which represents a 42 per cent increase on continuing operations over 2003.
The group's Australian unit APN News & Media Limited raised its full-year outlook last month after first-half net profit rose 25 per cent.
"We have a very, very happy advertising and circulation picture for the second half of the year," Independent News Chief Operating Officer Mr Gavin O'Reilly told reporters.
Mr O'Reilly said: "We are more obviously bullish on 2005".
"The market expects about 10 percent (adjusted) EPS growth this year and about the same next year, but we would expect more than that," he added.
Independent, which also controls titles such as the New Zealand Herald and Australia's Sunshine Coast Daily through its stake in APN News & Media, said that it was set to reap the rewards of a restructuring that is now largely completed.
Asked if a target for annualised cost savings of €18.9 million by the end of 2005 was now starting to look modest, Mr O'Reilly said that the goal had not changed but that there was some room for manoeuvre.
"Certainly if there's more to get we won't be shy in getting it but at this stage we would say that we are very firmly on track."
The group has substantially restructured its Irish base, reducing its Abbey Street workforce by 208 during the first half of the year.
Shares in the company were down 0.5 per cent at €2.06 in Dublin early this morning, although only three trades had taken place.
In London the stock had yet to change hands.