Pre tax profits at Independent News & Media have fallen 17.2 per cent in the first six months of the year to euro 57.6 million, the company said today.
The media group blamed adverse currency movements, acquisition costs of Belfast Telegraph Newspapers and the investment in its new Irish printing facility at Citywest for the shortfall.
In Ireland, profits grew by 20 per cent to euro 39.6 million and turnover by 12.5 per cent to euro 172.6 million. The operating margin was 23 per cent.
The group said its main Irish titles recorded double-digit advertising growth with good performances in the key sectors of colour, retail, recruitment and property. But its stable of regional papers suffered falling ad revenue as a result of the foot-and-mouth crisis.
But on a more cautious note, it added that advertising growth is moderating as the Irish economy slows and as a result the group will focus on cost management in the latter half of the year.
Commenting on the results, Sir Anthony O'Reilly, executive chairman, said "We continue to strive for increased margins and this effort is being further enhanced by prudent cost management in all divisions, which we believe will allow us to continue to perform well going forward."
In Australia, the group’s APN News & Media Limited the largest operator in regional newspapers, radio broadcasting and outdoor advertising in Australasia - reported a disappointing one per cent rise in net profit to $22.1 million.
Operating profit was down 6 per cent due to a very tough advertising market that followed on from the weaker second half of last year, and which affected all divisions.
However recent trading has seen some pick up in the regional centres, as improving regional economic conditions begin to take effect, the company said.