APN swings to interim profit

Group will continue cost cutting, says publishing conditions challenging but revenue stabilising.

APN News Media (APN) will continue cost cutting in an attempt to pay down debt after swinging to an interim profit.  

The group said publishing conditions remained challenging but revenue declines were stabilising.

APN swung to a profit of $12.7 million for the six months to June, from a loss of $319.4 million in the prior year, when it took a $485 million impairment charge on intangible assets.

Revenue rose 5% to $426.5 million, from $405.4 million in the previous corresponding period.

It cut net debt by $17 million during the first half and was on track to shave another $40 million by the end of the calendar year, which would put debt at $50 million.

Chief executive officer Michael Miller, who took the helm in June, said "our goal is to have a balance sheet that positions us to have options to pay dividends, invest for growth, or pay down debt".

APN will not pay an interim dividend.