More jobs on the line at APN
APN chief executive Michael Miller said the group intended to retain all its Australian regional newspapers but, when asked if job cuts may be needed, said: "I can't say no to that."
"Unfortunately, that's business. I think it's prudent that all businesses look at their cost line."
APN said new technology could be employed and duplication between newspapers eliminated.
The media group, which also has significant publishing and radio assets in New Zealand, on Friday booked a net profit of $12.8 million for the six months to June 30. It was a substantial improvement on the previous corresponding period, when APN reported a loss of $319.4 million after slashing the value of its New Zealand publishing business.
Revenue at the regional arm fell 14 per cent to $107.8 million, and earnings were down 40 per cent to $12.7 million. Tough conditions in the retail sector and in local job markets continue to weigh upon advertising revenue.
But APN said the fall in revenue had eased and government spending was starting to pick up.
It said it had achieved cost savings in the first half from the restructure of the regional operations in northern NSW, resizing its head office and outsourcing support functions.
Shares rose 6¢ to 35¢.
Frequently Asked Questions about this Article…
APN booked a net profit of $12.8 million for the six months to June 30, a substantial improvement from the prior corresponding period when it reported a $319.4 million loss after writing down the value of its New Zealand publishing business. For investors, the result signals a move back to profitability, although regional revenue and earnings remain under pressure.
APN's CEO Michael Miller said the group intends to retain its Australian regional newspapers but could not rule out job cuts, noting that businesses need to look at their cost lines. Ongoing falls in regional revenue are prompting the group to seek further cost savings, which could affect roles.
Yes. APN has said it intends to retain all its Australian regional newspapers, even as it looks for cost efficiencies across the regional arm.
Revenue at APN's regional arm fell 14% to $107.8 million, and earnings were down 40% to $12.7 million. The decline highlights the weakness in local advertising markets, which investors should watch as it directly affects media companies' top-line advertising exposure.
APN said tough conditions in the retail sector and weak local job markets have continued to weigh on advertising revenue, reducing demand for regional newspaper ad space.
APN reported cost savings from restructuring its regional operations in northern New South Wales, resizing its head office and outsourcing support functions. The company also said it could employ new technology and eliminate duplication between newspapers to reduce costs.
Following the results, APN shares rose 6 cents to 35 cents, reflecting a positive market reaction to the return to profit and the company's cost-saving measures.
Yes. APN has significant publishing and radio assets in New Zealand. The prior year's large loss was partly due to a write-down in the value of its New Zealand publishing business, which is relevant for investors assessing regional exposure.
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