APN eyes takeover
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Feb 22, 2008, 7:29:55 PM2/22/08
to NZ,New Zealand,kiwi,Radio,TV Broadcasting.modetrated
APN eyes takeover of radio business
5:00AM Wednesday February 20, 2008
By John Drinnan
APN News & Media is interested in buying US partners Clear Channel
Communications out of shared radio assets including The Radio Network,
says chief executive Brendan Hopkins.
Hopkins delivered annual results for the transtasman company
yesterday, announcing an 8 per cent increase in net profit to A$169.4
million ($195.3 million). APN - which owns the New Zealand Herald, the
Listener and New Zealand Woman's Weekly - has declined to predict the
year ahead.
"Given the current turmoil in world markets, the board believes it is
inappropriate to give specific projections at this time," Hopkins
said.
Hopkins said APN was "very lowly geared" and conscious of changes in
the media market.
"But we are not casting around to acquire anything that moves," he
said.
He acknowledged potential for Clear Channel to sell out of its half of
the ARN radio joint venture - which owns 12 metropolitan stations in
Australia and TRN, with half of New Zealand's commercial radio
stations including Newstalk ZB. He said if Clear wanted to sell its
stake, APN would be "very interested" in discussions.
US-based Clear is merging with US private equity interests including
Bain Capital Partners and has already been selling non-core radio
assets,.
"If new owners did not want to retain its 50 per cent stake in radio
APN could have talks at that time.
"If something comes across the horizon we would have to be very
interested, and that would have to be a sizeable transaction," he
said.
APN said results were buoyed by good results for Australian publishing
and outdoor advertising.
New Zealand regional publishing was down in line with local economies
and performance for New Zealand businesses "remained subdued".
But with dairy payouts these should perform better around September.
He said radio income on both sides of the Tasman was flat.
The Herald on Sunday was now profitable and the Aucklander was showing
reduced losses.
APN announced a dividend of 21 cents per share to be paid on April 24.
Underlying revenue for the group was A$1.3 billion, up 4 per cent and
earnings before interest, tax, depreciation and amortisation (ebitda)
was A$361 million, up 6 per cent on the previous year.
APN NEWS & MEDIA
Results to December 31
* Revenue
2007: A$1.314b
2006: A$1.266b
* Ebitda
2007: A$361m
2006: A$342m
* Net Profit
2007: A$169.4m
2006: A$157.5m
5:00AM Wednesday February 20, 2008
By John Drinnan
APN News & Media is interested in buying US partners Clear Channel
Communications out of shared radio assets including The Radio Network,
says chief executive Brendan Hopkins.
Hopkins delivered annual results for the transtasman company
yesterday, announcing an 8 per cent increase in net profit to A$169.4
million ($195.3 million). APN - which owns the New Zealand Herald, the
Listener and New Zealand Woman's Weekly - has declined to predict the
year ahead.
"Given the current turmoil in world markets, the board believes it is
inappropriate to give specific projections at this time," Hopkins
said.
Hopkins said APN was "very lowly geared" and conscious of changes in
the media market.
"But we are not casting around to acquire anything that moves," he
said.
He acknowledged potential for Clear Channel to sell out of its half of
the ARN radio joint venture - which owns 12 metropolitan stations in
Australia and TRN, with half of New Zealand's commercial radio
stations including Newstalk ZB. He said if Clear wanted to sell its
stake, APN would be "very interested" in discussions.
US-based Clear is merging with US private equity interests including
Bain Capital Partners and has already been selling non-core radio
assets,.
"If new owners did not want to retain its 50 per cent stake in radio
APN could have talks at that time.
"If something comes across the horizon we would have to be very
interested, and that would have to be a sizeable transaction," he
said.
APN said results were buoyed by good results for Australian publishing
and outdoor advertising.
New Zealand regional publishing was down in line with local economies
and performance for New Zealand businesses "remained subdued".
But with dairy payouts these should perform better around September.
He said radio income on both sides of the Tasman was flat.
The Herald on Sunday was now profitable and the Aucklander was showing
reduced losses.
APN announced a dividend of 21 cents per share to be paid on April 24.
Underlying revenue for the group was A$1.3 billion, up 4 per cent and
earnings before interest, tax, depreciation and amortisation (ebitda)
was A$361 million, up 6 per cent on the previous year.
APN NEWS & MEDIA
Results to December 31
* Revenue
2007: A$1.314b
2006: A$1.266b
* Ebitda
2007: A$361m
2006: A$342m
* Net Profit
2007: A$169.4m
2006: A$157.5m
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