Investor Relations
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INM Pre-Close Trading Update
Independent News & Media PLC, a leading international media group, is today (20th December) issuing a trading update in respect of the financial year ending 31st December 2002. This statement is intended to update investors on the Group's progress in the current year, in advance of the Company's full year results announcement planned for 26th March 2003.
Against a challenging backdrop in the media market, Independent News & Media PLC continues to demonstrate the operating resilience of its worldwide operations.
Revenues:
The Group's globally diversified operating base - centred in the five primary markets of Ireland, Australia, New Zealand, South Africa and the United Kingdom - is expected to deliver total revenues in line with 2001. This follows a gradual, consistent and accelerating improvement in advertising volumes and yields across the radio, outdoor and publishing divisions throughout the year, particularly in the period since October. In addition, within the publishing divisions, circulation revenues advanced strongly, reflecting both cover price increases and volume gains in key markets.
Operating Profits:
Each of the Group's divisions is trading well with an evident strengthening in performance towards year-end, enhanced by tight cost management resulting in substantial savings across all divisions. Accordingly, with an improvement in trading in the 2nd half, the Group expects to show an operating performance for 2002, which will achieve market consensus forecasts.
Outlook:
Based on the strong trading in Quarter 4, advertising visibility has improved and circulation revenues remain very buoyant. The Group's much lower debt levels coupled with lower interest rates and strong working capital management will result in a substantially reduced interest charge for 2003. In addition, significant cost efficiencies continue to be delivered within each operation, and the Group has already secured a major reduction in newsprint prices through 2003.
The Group's strong brands, leading market positions, and geographic diversity leaves it well positioned to deliver a meaningful improvement in earnings for 2003.
Ends. 20th December 2002
For further information:
Donal Buggy - Chief Financial Officer +353.1.466.3200
Gavin O'Reilly - Chief Operating Officer +353.1.466.3200
Pat Walsh - Murray Consultants +353.1.498.0300
Richard Oldworth/ Mark Edwards - Buchanan +44.207.466.5000
