Sluggish NZ economy pushes APN into the red

Australian media giant APN News & Media’s full-year earnings sunk into the red as the effects of the Christchurch earthquake and the subdued New Zealand economy forced it to writedown the value of its Kiwi mastheads.

The results come as it unveiled an outdoor advertising joint venture with Quadrant Private Equity. APN, which publishes the New Zealand Herald and operates the Radio Network, reported a net loss of A$45.1 million (NZ$57.7M) for the 12-months ending December 31, down from a bottom line profit of A$93.8m in the same period last year.

The company took a A$159.5m impairment to its intangible assets, with the bulk of that relating to a $159.5m writedown to its New Zealand metro and regional mastheads. Stripping out exceptional items, the company’s net profit was A$78 million, off a 1 per cent gain in revenue to $1.1 billion.

‘‘This impairment was a result of a number of factors, including the impact of the Christchurch earthquakes on the New Zealand economy, the slower than expected recovery of the advertising markets and the ongoing impacts of the financial crisis,’’ APN said in its financial statement.

Breaking down revenue by geography, APN’S New Zealand media and radio businesses continued to contribute to the bulk of its sales, at A$303.3m and A$86.7m respectively.

Australian media revenues came in at A$272.8m, while its radio business generated sales of A$133.2m.

Outdoor advertising revenues were A$263.7m, while revenues were A$12.6m.

APN said it had reached an agreement to form an outdoor advertising joint venture with Quadrant Private Equity.

The joint venture, APN Outdoor, will include all of APN’S outdoor advertising businesses in Australia and New Zealand as well as its 50 per cent interest in Indonesia’s Rainbow Premium Outdoor.

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