Independent News & Media, which publishes the Belfast Telegraph among other Irish titles, has reduced net debt by €40 million
Credit: Chris Downer/Geograph. Some rights reservedRevenues at Ireland-based publisher Independent News & Media, former owner of the Independent, have fallen by 5.6 per cent so far this year, according to figures released by the company today which cited an "erratic" market.
In an interim management statement for the 45 weeks ending 11 November, published today, the publisher also announced a change to its full year operating profit target of between €74 million to €78 million, compared to the range of €78 million to €83 million given in its half year results in August.
In a breakdown of the results the company said that advertising revenues dropped by 6.4 per cent year-on-year, while circulation revenues fell by 1.6 per cent.
The company has however managed to reduce its net debt by €40 million since the end of last year, the report adds.
"Market conditions in both Ireland and South Africa remain challenging. Since the group announced its 2011 first half results, there has been some positive moderation in advertising trend lines. However, the anticipated seasonal lift in advertising in H2 has not fully materialised due to the negative effects of the continuing recession and unprecedented Eurozone political and economic crises.
"Given the continuing weakness in broader market conditions and still-poor advertising visibility, we expect full year operating profit in 2011 to be in the range of €74 million to €78 million, with strong cash management ensuring debt pay-down in line with the group's stated objectives."
But the company insisted it is "well positioned to benefit from a cyclical economic recovery, when it occurs".
"As market conditions improve, the group's strong operating leverage, enhanced by the significant and sustainable operating cost reduction delivered over the past three years, should convert any incremental revenue growth into an improved operating profit performance, enhanced cash flow conversion and further debt pay-down."
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