Independent News and Media says it notes the 'unwarranted' decline in its share price and believes that the current market capitalisation does not fairly reflect the true value of the company's underlying assets and the current trading performance.
In a trading update this morning, it says that its total group revenue is estimated to reach over €1.4 billion for the year ending December 2008, down 3% on the previous year in constant currency terms.
The INM share price has fallen dramatically recently and is 95% off its 2007 highs. It had slumped by 45% in the last week alone, but ended up seven cent (36%) in Dublin this evening.
INM said today that its operating profit for 2009 is currently forecast to be within a range of €240-270m, down 10% on 2008. However, this is dependent on no further deterioration in advertising and credit markets
However, it says that it will not be recommending a final dividend for 2008 as it tries to maximise its cash flow.
INM said it had completed a review of its 39% stake in Australasian media company APN. The review followed interest from potential buyers last year, but INM says deteriorating credit markets had made it difficult for interested parties to put together bids which would have been acceptable to INM and other shareholders.
INM has also identified some assets which it plans to sell off. It says these are either 'non-strategic core assets' or divisions whose sale will not affect its other businesses. The group said it would also focus on eliminating loss-making businesses.
The company says that while it - like all other companies - is currently operating in very challenging economic and advertising conditions, its global and diverse operations are continuing to demonstrate considerable resilience. It points out that 33% of its group revenues are not dependent on advertising markets.
It also says that its Irish and UK staff have accepted a 'comprehensive' series of pay reductions and other payroll related cost savings across all divisions for 2009. INM directors have also agreed to a 10% reduction in their fees and a 10% reduction in their salaries. No bonuses will be paid for 2008.
