INDEPENDENT News and Media digital revenue is up 17.6pc, but advertising revenue overall is down 5.3pc on the same period in 2011, according to an interim management statement today.
Total group revenue is down 3.5pc and consistent with the media group’s focus on continuing efficiency and cost reduction, operating costs have also been reduced, down 1.4pc year-on-year.
Circulation revenue is down 3pc on the same period in 2011.
Forecasting in the current climate is very difficult and advertising remains challenging and erratic, the statement on the company’s trading performance for the first 19 weeks of 2012, said.
Cost savings were delivered across all operations offsetting inflationary cost pressure in South Africa and significant energy price increases.
All of the Group's Free Cash Flow year-to-date has been applied to debt reduction, with Net Debt currently standing at c.€420 million, the statement said.
“INM has a strong portfolio of market-leading and profitable titles. The Group also has a well invested and increasingly efficient asset base, with no significant near-term capital expenditure requirements. INM is committed to continued cost vigilance and we have strong operating leverage in our business to translate any improvement in market conditions directly to our bottom line. Our focus is on maximising available cash flow for continued debt paydown, which will deliver value for our shareholders,” the statement said.