Independent News & Media has reported a 22.5% rise in profit before tax for the first half of the year to €18.5m, with revenues at the media company rising by 2.7% to over €161m for the period.
The strong performance comes despite what INM CEO Robert Pitt described as "a challenging trading environment" in which print newspaper circulation levels and associated ad revenue continue to decline.
The company said the performance was driven by strong digital advertising revenue growth and a decrease in operating costs, including the closure of its printing operation in Belfast and the integration of its digital and print newsrooms.
However, INM’s publishing advertising revenue fell by 7.8% and circulation revenue was 5.4% lower for the period.
The group’s net assets rose by nearly €10m to the end of June to €37.3m, while it has a cash balance of €62.4m.
During the first six months of the year INM acquired the remaining 50% of CarsIreland.ie and Greer Publications, with the company saying it is actively reviewing potential acquisition opportunities.
The distribution arm of INM, Newspread, saw strong H1 growth by signing a new contract with the Irish Times and agreeing a new deal with the RTÉ Guide – however, growth is expected to slow in the remainder of the year.
Although the INM title, the Irish Independent, has the largest market share among ‘daily quality’ publications, the market for printed newspapers continues to shrink.
Commenting on the results, INM Group CEO Robert Pitt said the strong H1 performance was achieved "despite a challenging trading environment".
He said: “However, underlying operating profit growth of 3.1% better reflects the challenges the industry and INM face.”
Mr Pitt added: “The Group continued to generate positive cashflow and applied a portion thereof to the acquisitions of the remaining 50% shareholding in CarsIreland.ie and Greer Publications, reflecting INM’s belief that further consolidation is necessary in the industry in order to both protect shareholder value and the viability of smaller publications.
“While the outlook for H2 continues to be challenging, particularly in print advertising, the group will continue to deal with those challenges pro-actively.”
