APN considers spinning off NZ assets
APN News and Media has admitted to the Australian Securities Exchange it is seriously considering spinning off its New Zealand media assets, with an IPO one potential option.
The company owns several major media assets in the country including the NZ Herald, The Radio Network which includes NewsTalk ZB, magazines including That’s Life and Girlfriend and online group buying site GrabOne.
In a statement made to the ASX yesterday the company, which posted improved financial results for the first half of the year last month, said the company is starting to see traction with a new cross-platform advertising offering it started under new NZ CEO Jane Hastings.
While the company as a whole posted a profit of $22m for the first half of the year revenues and EBITDA for the NZ Media assets were down 13 per cent, with The Radio Network enjoying a bounce of 6 per cent.
The statement:
APN News & Media Limited today announced that it is considering strategic options with regards to APN New Zealand, which incorporates its New Zealand publishing assets, The Radio Network and GrabOne businesses.
“APN has retained Grant Samuel to assist in the process, with an IPO and NZX listing of APN New Zealand being one consideration. Collectively APN’s print, radio and digital assets represent New Zealand’s pre-eminent media and entertainment business with market leading brands such as The New Zealand Herald, Newstalk ZB, ZM and GrabOne.
“In May, APN announced the appointment of Jane Hastings to the newly created role of Chief Executive Officer of APN New Zealand. Under her leadership, APN New Zealand is focusing on business improvement to ensure closer collaboration between all APN’s media businesses.
“This includes the establishment of APN ‘Collaborative Media Solutions’, which provides clients with access to advertising packages that leverage APN’s extensive audience through its newspapers, magazines, radio and digital channels.
“Hastings says the move has only just begun but is starting to pay off for APN New Zealand. “We are seeing a positive response from big advertisers and the Group sees this as a key future strategy.”
“Further announcements will be made as appropriate.”
