AD DOWNTURN MAY HAVE HIT BOTTOM - INM - After securing another agreement with its banks and bondholders, giving it more time to hammer out a deal on its €200m debt, which was to be paid in May last, there are results this morning from Independent News and Media.
It has reported a sharp drop in profits in the first six months of the year as its advertising revenue fell by almost 20%. Total revenue fell by 22% to €608.8m, while operating profits more than halved to €73.2m.
Vincent Crowley, chief executive of INM Ireland, said all media companies were finding it tough at the moment. But he said that the group was controlling costs and making a profit, and that circulation revenue was steady. He said that while advertising revenues were well down, there were signs that this was not getting any worse.
Mr Crowley said the group was always looking at ways to cut costs, though there was not much more outsourcing it could do in its Irish business.
He said the proceeds from the sale of businesses such as outdoor advertising would be part of the talks with banks and bondholders on paying back its debt. But he said none of INM's publishing assets were up for sale. Asked about the second half of the year, Mr Crowley said INM's forecast was cautious, but the percentage drops in advertising revenue should be smaller.
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NEWS AND CURRENCIES - Grafton Group has reported an operating loss of €8.3m for the first six months of the year, compared with €71.8m of profit for the same period a year ago. Grafton's turnover fell by 31% to just under €1 billion, but the group says the downturn has moderated in recent months and sales are stabilising.
Grafton's chairman Michael Chadwicke says he hopes to be back in operating profit in the second half. He said that if economists are right trading should be better in 2010 than 2009. And he said that in Ireland he can not point to signs of upturn but has seen most of the downturn.
On the currency markets, the euro is trading at $1.4356 and 88.21p sterling.
