Red ink for APN but billboard business looks good
Media company APN has today revealed a poor set of annual financial numbers with its outdoor business the only significant bright spot.
By all measurements, the company saw a big drop in profits compared to the previous year. EBITDA (earnings before interest, tax, depreciation and amortisation) profits were down by 22% from $108.6m to $85m. Earnings before interest and tax were down by 24% to $66.5m. And net profit after tax was down 46% from $40m to $21.8m.
The worst figure was for net proft after exceptional items had been taken into account – the company reported a loss of $98.3m. This was mainly because of writing down the value of its NZ mastheads.
The company, which has significant businesses in both Australia and New Zealand, blamed “weak retail markets and natural disasters”.
Key assets include The New Zealand Herald, Australian Radio Network, the APN Outdoor business and its regional Australian newspaper titles.
APN’s CEO Brett Chenoweth said: “Our greatest challenge in the first half came from the publishing businesses in Australia and New Zealand. Consumer and business confidence in those local markets began to deteriorate late in the fourth quarter last year. The flooding in Queensland and the earthquakes in New Zealand exacerbated this general slowdown.
“In contrast, we have had a very solid half from our outdoor and radio businesses. Outdoor, with revenue up 11% and EBIT up 80%, is a standout performer. The division recorded excellent market share growth in Australia while in New Zealand a combination of organic market gains and the acquisition of the Oggi billboard business have taken our market share to 25%.”
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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