Belfast Telegraph’s owner INM reporting £25m profits for 2017

BELFAST Telegraph publisher Independent News & Media (INM) has reported a profit before tax of €28.5m (£25m) for 2017, on sales of €293m (£261m).

The company’s much-watched cash pile increased to €91.5m (£81m), according to preliminary financial results for 2017.

The directors are not proposing a dividend for 2017, but the group said it intends to make a “significant investment to reshape the business” and to deliver against a strategic plan.

INM also publishes the Sunday Life, belfasttelegraph.co.uk, nijobfinder.co.uk and recruitni. com, and the Irish Independent and Sunday Independent.

The latest results show the business — the biggest media company on the island of Ireland — was hit by net exceptional charges of €12.1m (£10.76m) in 2017. That included a charge of €1.5m (£1.3m) relating to a severance payment to former chief executive Robert Pitt, who resigned in October, ending a long running boardroom row.

Chief executive: Michael Doorly

Impairments were partially offset by one-off gains, including in relation to the group’s pension obligations.

The general outlook for the sector remains challenging, INM said. It added: “The outlook for 2018 is for continued difficult trading conditions within the media sector as key revenues — advertising, circulation and distribution — face further declines.”

In response, INM said its board and management are currently collaborating with EY on a strategic plan which will provide a roadmap for the future. In 2017 INM appointed Michael Doorly as chief executive and has appointed four new non-executive directors, including UK media veteran Murdoch MacLennan — who was elected chairman by the new board this week.

“These appointments bring a wealth of experience and expertise in the media industry and the wider corporate world, further strengthening and supporting INM’s board to ensure the group is equipped to meet the demands of the rapidly changing industry,” the company said.

The latest results show profits down 31.8% compared to 2016. Total revenues fell 9.4%.

INM said reduced profits were primarily due to continued revenue challenges and increased libel and legal costs.

Overall costs also fell, however.

Revenue decline was primarily driven by a fall in total advertising revenues of 10.6%, and a decline in circulation revenues of 8.4%, which in turn impacted distribution revenues.

On a like-for-like basis digital revenues were up 1% on the year.