Australia's APN News & Media, which is the subject of a €2.8bn takeover offer from a group led by Independent News & Media, had difficult trading conditions in its three main metropolitian markets last year.
APN said its markets of Auckland, Sydney and Melbourne showed no rise, or a fall in growth, and the group reported underlying trading revenue down 2% at A$1.26 bn (€0.752bn), when not adjusted for currency movements.The Sydney radio market was down 5%, the group said.
However, the group said net profit after tax rose 7% on the prior year to A$159.5m (€95.2m), and earnings per share rose 10% to 34.3 cents.
APN chief executive Brendan Hopkins said :'2006 was a challenging year, particularly in the mid quarters...Despite this we have recorded a satisfactory trading restul, and, with effective management, have delivered an acceptable outcome for shareholders'.
He said that readership numbers accross all major titles performed well, with market share being retained across all major advertising categories.
He said advertising was sluggish, though radio recorded a satisfactory result in difficult trading conditions.
Independent News & Media, which owns a 41.6% shareholding in APN, has teamed up with US-based buyout groups Providence Equity Partners and Carlyle, to buy the remaining stake, and last week raised its offer to A$6.10 a share from A$6.05, winning support from APN's directors.
APN said today that trading for 2007 to date is in line with expectations and in line with the prior year. APN said that following the proposal by the IN&M led consortium to acquire all the shares in APN, detailed disclosures will be sent to APN shareholders.
The company said that at the time the offer was announced on 12 February, the average estimate of earnings before interest, taxes, depreciation, and amortisation (EBITDA) by research analysts was A $373m (€222.7m) for 2007, and it cannot disclose any further guidance at this time.
APN is the publisher of 23 daily regional and 100 non-daily papers in Australia and New Zealand.
