Independent News & Media PLC Announces 1999 Results; Pre Tax Profit Up 68% To -euros- 143 Million; Independent Digital Growing Strongly.Business Editors DUBLIN--(BUSINESS WIRE)--March 29, 2000 The Board of Independent News & Media PLC today announced year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results for the 54 weeks ending 31st December December: see month. 1999. Independent News & Media PLC operates in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. , New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. and the United Kingdom and has three core businesses: publishing; electronic media and outdoor advertising. Independent Digital is leveraging these three core businesses for enhanced growth and performance.
RESULTS 1999 1998 Change
-------
(euros)m (euros)m %
-- -- ----
Turnover 1,168 799 +46.2
Operating profit(a) 192 139 +38.1
Profit before tax 143 85 +68.2
Fully diluted earnings per share(b) 30.72c 24.56c +25.1
Dividends per share 13.33c 11.43c +16.7
HIGHLIGHTS FOR THE YEAR - Strong performances in Ireland, Australia and New Zealand. - iTouch (1) See iPod touch. (2) The touch screen technology used in a line of Touchmonitor CRTs from Elo TouchSystems (www.elotouch.com). Rather than using a vulnerable touch screen overlay, iTouch transmits ultrasonic waves horizonally and vertically within the display expands internationally. - Unison unison, in music, tones identical in pitch produced by two or more parts or voices. In popular usage a vocal composition is said to be sung in unison even though some of the voices are separated from others by the interval of an octave. launches "Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the on TV" initiative in Ireland. - UK Independent makes circulation gains - losses reduced. - South African economy set for recovery. - (euros)200 million 10 year bond issued at coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer of 5.75%. - Group restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan substantially completed. - Successful bid for Belfast Belfast (bĕlfăst`), Gaelic Béal Feirste, city (1991 pop. 297,000), capital of Northern Ireland, Belfast dist. It is on Belfast Lough, an inlet of the North Channel of the Irish Sea, and at the mouth of the Lagan River. Telegraph telegraph, term originally applied to any device or system for distant communication by means of visible or audible signals, now commonly restricted to electrically operated devices. Attempts at long-distance communication date back thousands of years (see signaling). since year end. (a) Continuing activities before exceptional items (b) Before exceptional items and amortization Commenting on the results and prospects Dr. A.J.F.O'Reilly, Chairman said: "After a challenging start to the year, when many economies were only emerging from the Asian crisis, your Group achieved steady and sustained performance growth throughout 1999, demonstrating the vitality vi·tal·i·ty n. 1. The capacity to live, grow, or develop. 2. Physical or intellectual vigor; energy. and breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of our market leading brands. Since 1973 the compound annual return to shareholders with dividends reinvested is 27%. "Our restructuring plan is achieving significant savings in our core operations, and Independent Digital is producing tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. results in the new media area. I believe the current year will bring further growth and exciting developments for your Group." INDEPENDENT NEWS & MEDIA PLC ANNOUNCEMENT OF RESULTS FOR THE 54 WEEKS ENDING 31st DECEMBER 1999 PRE TAX PROFIT UP 68% TO (euros)143 MILLION INDEPENDENT DIGITAL GROWING STRONGLY Independent News & Media PLC announces record turnover of (euros)1.17 billion for the 54 weeks ending 31st December 1999 compared with (euros)799 million in 1998, an increase of 46%. Group operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before exceptionals at 192 million is 38% up on the 1998 figure. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , excluding exceptional items and amortization were 30.72c, up 25% from 24.56c in 1998. Independent News & Media is a fast growing international media and communications Group. Ten year performance in terms of shareholder return, is a very impressive 25% compound per annum Per annum Yearly. . Annual EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. growth (fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. before exceptionals and amortization), is a very satisfactory 14.3%. In the same ten year period, the Group achieved a 22% compound annual growth in turnover, 27.3% in operating profits before exceptional items, 31.4% in pre tax profits and 14.9% in dividends per share Dividends per share Dividend paid for the past 12 months divided by the number of common shares outstanding, as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term. . Market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. to date has grown from (euros)115 million to over (euros)2.6 billion since 1990. A shareholder who invested the equivalent of (euros)1,000 in 1990, with dividends reinvested, has a holding currently worth (euros)9,600. Since 1973, the compound annual return to shareholders with dividends reinvested is 27%. The Board is recommending a final dividend of IR7p (8.89c) per share, making a total dividend for the year of IR10.5p (13.33c), an increase of 16.7% on 1998. A scrip issue scrip issue n. An issue of shares made by a company free of charge to existing shareholders. Also called bonus issue. alternative is again available to shareholders. Relevant Share Certificates and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. Dividend Warrants will be posted on 31st May 2000 to ordinary shareholders registered at the close of business on 14th April 2000. Operations In Australia, APN APN abbr. advanced practice nurse News & Media reported a 56% increase in operating profits to a record A$109.3 million ((euros)66.1m) together with a 20% increase in net profit after tax and minority interests to A$42.4 million ((euros)25.6m). This is the company's seventh consecutive year of profit and dividend growth since its flotation flotation or froth flotation Most widely used process for extracting many minerals from their ores. The method separates and concentrates ores by altering their surfaces so that they are either repelled or attracted by water. in 1992. APN is 41% owned by Independent News & Media PLC and is the top performing media stock in terms of EPS growth in Australia over the last five years. APN is the largest operator of regional newspapers, radio stations and outdoor advertising in Australasia Australasia (ôstrəlā`zhə, –shə), islands of the South Pacific, including Australia, New Zealand, New Guinea, and adjacent islands. The term is sometimes used to include all of Oceania. and achieved double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth in each of these divisions, confirming the success of the company's unique multi-media strategy. The Outdoor Advertising division in particular had a very successful year, increasing operating profits by 51%. In the Regional Newspapers division, solid growth continued with operating profits up by 11% over the previous year. APN's broadcasting division posted another good result with operating profits up 11%. APN has been at the forefront of acquiring stakes in new media companies on a 'space for equity' basis. A number of investments have been made and include 12% of Peakhour (business to business services); 25% of Soprano (WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. design) and iTouch Australia (mobile information services See Information Systems. ). APN Digital has also established a number of successful internally generated Internet sites and is working on building a portfolio of Internet assets that will build real value around the Group's existing print and radio franchises. The year 2000 has begun strongly across all divisions and APN is determined to deliver an eighth consecutive year of profit growth. In Ireland, operating profits grew by 17% to (euros)63.3 million and turnover grew by 11% to ?310.5 million. The Irish economy continues to grow strongly and all of the Group's market leading brands benefited from increased advertising, buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. circulations and readership read·er·ship n. 1. The readers of a publication considered as a group. 2. Chiefly British The office of a reader at a university. . Independent titles cumulatively enjoyed very strong growth in advertising and outpaced the overall market growth of 12%, with strong market share gains in colour, technology (dot.com See dot-com. ), classified and display. Circulations and readership grew year on year, and the flagship This article is about the lead ship, store, or product of a group. For other uses, see Flagship (disambiguation). A flagship is the ship used by the commanding officer of a group of naval ships. Irish Independent achieved a seventeen-year circulation high of 165,500, despite significant competitor activity. The Group's titles remain the undisputed market leaders in every segment in which we compete with a very strong 50% ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. market share and an even more impressive 72% readership penetration The successful unauthorized breach of a security perimeter. See penetration test. . The construction of the new (euros)60 million print plant is well advanced and on schedule. Union negotiations are at an advanced stage and the state-of-the-art facility will be fully operational before year end. Early in the current year, Unison - the Irish Internet service provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. - launched a revolutionary initiative to enable Internet access See how to access the Internet. through conventional television. This followed the acquisition of Internet Ireland in February February: see month. . Unison is a joint venture with Princes Holdings (PHL), and the exclusive portal for PHL, which is Ireland's second largest cable operator currently managing over 250,000 subscribers (versus 150,000 in 1998) throughout Ireland, with homes passed in excess of 650,000. The response to this Internet initiative has been very strong and Unison has accelerated the purchase of additional digital set top boxes from Netgem SA of France, which now exceeds IR(pound)7 million. Unison offers free Internet access, free e-mail See Internet e-mail service. , on-line shopping and access to the largest Irish resourced portal for news and information - which includes 40 newspaper titles from around Ireland - all through the domestic television. PHL, in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with only four other companies, was awarded local loop licences during the year to deliver both broad and narrowband In communications, transmission rates up to T1 speeds (1.544 Mbps). The upper limit is moving target. At one time, narrowband meant 150 bps (that is 150 bits per second!). Then, the upper limit became 2,400 bps. Later, it moved to 64 Kbps. Contrast with wideband and broadband. telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. . PHL is now equipped to provide a nationwide broadband telephony See VoIP. service and is currently investing over IR(pound)300 million in rapidly building out its high speed fibre optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. network backbone backbone: see spinal column. The part of a network that handles the major traffic. It employs the highest-speed transmission paths in the network and may also run the longest distances. , to become Ireland's first national broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). network to offer bundled bun·dle n. 1. A group of objects held together, as by tying or wrapping. 2. Something wrapped or tied up for carrying; a package. 3. Biology A cluster or strand of closely bound muscle or nerve fibers. digital TV, telephony and Internet access. A 51% shareholding in Switchcom - Ireland's largest pre-paid phone card business - was acquired during the year, to complement PHL's telephony roll-out. Through the introduction of iTouch, our goal is to become the market leader in Ireland for WAP, SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. and m-commerce (Mobile-COMMERCE) Using smartphones and handheld computers with wireless connections to place orders and transact business over the Web. See m-business and e-commerce. services. In New Zealand, the Group's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Wilson Wilson, city (1990 pop. 36,930), seat of Wilson co., E N.C., in a rich agricultural region; inc. 1849. It is a commercial and industrial center with a large tobacco market. Manufactures include textile goods (especially clothing), metal products, and processed foods. & Horton Horton, river, c.275 mi (440 km) long, rising in a lake N of Great Bear Lake, Northwest Territories, Canada, and flowing NW to Franklin Bay, a part of the Beaufort Sea. , contributed NZ$100 million ((euros)50m) to operating profits, an increase of 13% over the previous year. The result reflected the resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. in trading profits Trading profit The profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates. trading profit achieved in the second half of 1999 as the New Zealand economy strengthened and the restructuring program resulted in a significantly lower cost base. The flagship title, The New Zealand Herald HERALD Help-assisted Radio Link Design , outperformed the market in the national, automotive and employment advertising sectors with real estate and retail performing significantly better than 1998. The regional and community newspaper division posted strong growth and reduced its cost-base. Wilson & Horton Print, New Zealand's largest commercial and security printer, also posted a strong performance over 1998, positioning itself as a Trans-Tasman Trans-Tasman is an adjective used primarily in Australia and New Zealand, which signifies an interrelationship between both countries. Its name originates from the Tasman Sea which lies between the two countries. business. The online division, W&H Interactive, performed ahead of its field, winning numerous awards for the company's websites and online products such as NetClassifieds, which is recognized as one of the top classified websites in the world. Wilson & Horton is moving rapidly into m-commerce as its associate company, iTouch New Zealand, is set to launch a range of WAP, SMS and IVR (Interactive Voice Response) An automated telephone information system that speaks to the caller with a combination of fixed voice menus and data extracted from databases in real time. products to offer mobile telephone users a range of value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. mobile services. Trading conditions in the first quarter of 2000 are positive, with a continued strengthening of advertising volumes and commercial printing revenues. In South Africa, turnover at SAR (Segmentation And Reassembly) The protocol that converts data to cells for transmission over an ATM network. It is the lower part of the ATM Adaption Layer (AAL), which is responsible for the entire operation. See AAL. SAR - segmentation and reassembly 1.15 billion ((euros)177.3m) was up 6% on the previous year. However difficult economic conditions reduced trading profit by 9% on the previous year to SAR152 million ((euros)23.3m). During the year, Independent increased its shareholding in Independent Newspapers Holdings South Africa to 100%, well timed Adj. 1. well timed - done or happening at the appropriate or proper time; "a timely warning"; "with timely treatment the patient has a good chance of recovery"; "a seasonable time for discussion"; "the book's publication was well timed" given the sharp rise in media stocks since then. The restructuring program has now been completed involving a reduction in staff of 440 people, with the cost base of the operation now considerably leaner lean 1 v. leaned, lean·ing, leans v.intr. 1. To bend or slant away from the vertical. 2. . Trading conditions improved in the final quarter after having been adversely affected by the aftermath AFTERMATH. A right to have the last crop of grass or pasturage. 1 Chit. Pr. 181. of the Asian crisis coupled with interest rates, which peaked at 25.5%. Interest rates have now fallen to a more reasonable 14.5% and the economy is forecast to grow by 3-3.5% in 2000. The company's 14 titles, commanding 62% of the major metropolitan English 1. English - (Obsolete) The source code for a program, which may be in any language, as opposed to the linkable or executable binary produced from it by a compiler. The idea behind the term is that to a real hacker, a program written in his favourite programming language is speaking market (and 67% of the major metropolitan English newspaper reading market), are ideally placed to benefit from the upturn. Independent Online (iol.co.za) was launched in July July: see month. and quickly established itself as one of the leading news and classified sites in the country. Other newly launched sites, include Business Report (busrep.co.za), Personal Finance (persfin.co.za) and Mywealth (mywealth.co.za), which take advantage of our newspapers' leading position in the financial area. Independent increased its current shareholding in iTouch, the leading mobile phone value added services provider in South Africa, from 20% to more than 70%. iTouch has expanded rapidly since Independent first became involved two years ago, and now has operations in the five markets where Independent is strongest: South Africa, Australia, New Zealand, Ireland and the UK. iTouch South Africa has already launched a range of short message services (SMS) and in March this year it launched the first WAP (wireless application protocol) portal in South Africa in collaboration Working together on a project. See collaborative software. with Vodacom, South Africa's largest mobile network. These services are now being rolled out internationally. iTouch has formed a number of key alliances with mobile operators, including Vodafone Vodafone Group Plc is a mobile network operator headquartered in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about £84.7 billion (July 2007). Airtouch AirTouch Communications was a U.S.-based wireless service provider that was created when PacTel Cellular was spun off from Pacific Telesis on April 1, 1994, forming both AirTouch Cellular and AirTouch Paging. , together with a number of content providers, placing Independent at the forefront of the mobile phone information services market in South Africa. In the UK, on a like for like basis, revenues increased by 6% to Stg(pound)99.8 million ((euros)151.5m) and overall losses were reduced and in line with expectations. During the year a number of acquisitions strengthened all operating divisions and the Group established itself at the forefront of new media developments. The flagship titles The Independent and The Independent on Sunday Sunday: see Sabbath; week. achieved audited ABC circulation highs of 231,000 (daily) and 263,000 (Sunday), a 4% increase on the comparable period last year, demonstrating the continued vitality of these award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" brands. Reflecting the affluent and young demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. of our readership, the format of The Independent was further strengthened with the introduction of a weekly sports review Sports Review was an early British television programme, produced by the BBC and screened on their BBC Television Service in the late 1930s. It was the first regular sports programme to be transmitted on television. (Monday Monday: see week. ) and a business review (Wednesday Wednesday: see week. ). Simon Kelner Simon Kelner (1957 - ) is a British journalist and newspaper editor. Kelner is editor-in-chief of The Independent and Independent on Sunday newspapers. He was appointed in May 1998 to succeed Andrew Marr and Rosie Boycott. has again been named "Editor of the Year" and The Independent's writers and columnists have won further accolades for their contributions. The regional titles enjoyed another good year with increased revenues and profits. Magazines performed well during the year and "Dominion dominion, power to rule, or that which is subject to rule. Before 1949 the term was used officially to describe the self-governing countries of the Commonwealth of Nations—e.g., Canada, Australia, or India. ," one of the leading educational magazine Groups was acquired, which together with UCAS UCAS (in Britain) Universities and Colleges Admissions Service , makes Independent Newspapers (UK) the number one player in the educational courses market in Britain Britain (brĭt`ən), alternate term for Great Britain, comprised of England, Scotland, and Wales. Often used synonymously with the United Kingdom, the name Britain is derived from Britannia, . A 30% stake in MBA MBA abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration Direct was also acquired, a unique recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. website for MBA graduates. 10% of this was acquired on a 'space for equity' basis. The Independent's website (www.independent.co.uk) is currently registering eight million impressions per month putting it in the top twenty content sites in the UK, an increase of 220% since the site was revamped in September September: see month. . iTouch UK will follow, offering Internet access to mobile phone users, coupled with a range of unique value added mobile information services. The UK national, new media and magazine operations will move to state-of-the-art new premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person in the Autumn Autumn Autumnus personification; portrayed as mature and manly. [Rom. Myth.: LLEI, I: 322] Bacchus god of this season. [Rom. Myth.: Hall, 130] Carpo goddess of autumn and corn season. [Gk. Myth. , producing significant savings and synergies. Independent Digital At the beginning of 1999, Independent News & Media launched a dedicated division - Independent Digital - to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. and enhance the Group's new media activities and develop a coherent A version of Unix developed by Mark Williams Co., Northbrook, IL, that was noted for its conservative use of resources on Intel-based PCs. infrastructure across all operations worldwide. 1999 was an important year for this new division and has already made significant strides, becoming a dominant online force in each of our primary markets. Unison's set top box initiative has been initially launched in Ireland and iTouch is rolling out its range of value added services utilizing SMS and WAP technologies in a number of markets. Independent Digital's focus is to ensure that our market leading brands, our unrivalled content and our potent po·tent adj. 1. Exerting or capable of exerting strong physiological or chemical effects. 2. Able to perform sexual intercourse. Used of a male. marketing channels are maximized in this fast developing interactive world. We aim to occupy the leading position in the online space, and thereby enhance our traditional revenue streams and create new revenue opportunities. Corporate Developments In March 1999, the Group made an offer for the remaining 24% minority of Independent Newspapers Holdings Limited (INHL INHL Institute for Nursing Healthcare Leadership ) in South Africa at a cost of SAR405 million ((pound)63m). The offer was successful and the Group now owns 100% of INHL. The Group also exercised its option over the balance of the outstanding shares in Kelsal Pty. Limited. As a result, the Group increased its direct interest in APN to 41.4% and increased its board representation. This has resulted in the consolidation of APN into the Group accounts. In May 1999, the Group issued a (euros)200 million ten year Euro Bond which was heavily oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. . A very attractive coupon of 5.75% was achieved giving the Group access to efficient long term funding. Restructuring Since the announcement of the worldwide restructuring fifteen months ago, the Group has made significant progress in implementing the plan, strengthening its businesses and improving profitability and growth prospects in the coming years. To date, the Group has achieved 85% of the total headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reduction expected under the restructuring plan. Cost savings are in line with the plan and on-track to generate total cost savings in excess of (euros)114 million over the next five years. Implementation of FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 10 The 1999 results have been prepared incorporating FRS 10 "Goodwill and Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " removing internally generated mastheads and post-acquisition masthead mast·head n. 1. Nautical The top of a mast. 2. The listing in a newspaper or periodical of information about its staff, operation, and circulation. 3. revaluations from the Group Balance Sheet. The Directors have also presented a second Balance Sheet, which includes mastheads without any adjustment for FRS 10, which they believe more correctly reflects the true value of the assets employed by the business. FRS 10 also states that goodwill should normally be amortized over an appropriate period not exceeding 20 years. Accordingly, a prior year adjustment has been reflected in the 1999 results to reflect a change in accounting policy to amortization over a period of 20 years. Subsequent Events Subsequent to the year end, the Group was successful in bidding for Belfast Telegraph Newspapers Limited for a consideration of Stg(pound)300 million. This very attractive and important acquisition will be earnings enhancing in the first year and will be managed as part of our UK activities. The bid is now subject to the consent of the Secretary of State for Trade and Industry in the UK and notification to the Ministry for Enterprise, Trade and Employment in Ireland. Outlook Our core businesses are performing strongly and our new media initiatives are positioning us well for future growth and development. Annual General Meeting The Annual General Meeting will be held on 31st May 2000.
INDEPENDENT NEWS & MEDIA PLC
PROFITS ANNOUNCEMENT
GROUP PROFIT AND LOSS ACCOUNT
1999 1998
(euros)m (euros)m
------- -------
(as restated)
Turnover
- Continuing operations 868.0 779.8
- Acquisitions 300.2 -
--- ------
- Turnover from continuing operations 1,168.2 779.8
- Discontinued operations - 19.0
---------- ------
1,168.2 798.8
======= =====
Operating profit
- Continuing operations 152.4 138.7
- Exceptional items (0.8) (54.1)
------ ------
151.6 84.6
- Acquisitions 40.0 -
- Exceptional items (1.0) -
------ --------
Operating profit from continuing
operations 190.6 84.6
Discontinued operations - 2.3
-------- -----
Operating profit after restructuring and
rationalization costs 190.6 86.9
Exceptional gain on sale of discontinued
operations net of write down of
investments - 47.5
------- ------
Profit on ordinary activities before
interest 190.6 134.4
Net interest charge (47.9) (49.0)
---- -------
Profit on ordinary activities before
taxation 142.7 85.4
Taxation on profit on ordinary
activities (34.2) (13.6)
---- ------
Profit on ordinary activities after
taxation 108.5 71.8
Minority interests (including non-equity
minority interests) (38.4) (13.1)
---- ------
Profit on ordinary activities after taxation
and minority interests 70.1 58.7
Dividends paid (11.4) (9.6)
Dividends payable/proposed (22.8) (19.2)
---- ------
Retained profit for the Group and its share
of associates and joint ventures 35.9 29.9
===== ======
Earnings per share 27.72c 23.57c
------ ------
Fully diluted earnings per share 26.90c 23.15c
------ ------
Fully diluted earnings per share before exceptional
items and amortization 30.72c 24.56c
------ ------
STATEMENT OF TOTAL RECOGNIZED GAINS AND LOSSES
1999 1998 1999 1998
(euros)m (euros)m (euros)m (euros)m
------- ------- ------- -------
(Inc. (Inc.
Mastheads) Mastheads)
(as restated) (as
restated)
Profit on ordinary activities after
taxation and minority interests 70.1 58.7 70.1 58.7
Currency translation differences on
foreign currency net investments 106.2 (129.0) 97.0 (129.0)
Related tax charge on currency
translation differences (10.2) - (10.2) -
Profit on sale of treasury shares 4.0 - 4.0 -
---- ------ ---- -------
Total recognized gains and losses
relating to the year 170.1 (70.3) 160.9 (70.3)
Prior year adjustments - (6.9) - (445.5)
------ ----- ------ -------
170.1 (77.2) 160.9 (515.8)
====== ====== ===== =======
RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS
1999 1998 1999 1998
(euros)m (euros)m (euros)m (euros)m
------- ------- ------- -------
(Inc. (Inc.
Mastheads) Mastheads)
(as restated) (as
restated)
Profit on ordinary activities after
taxation and minority
interests 70.1 58.7 70.1 58.7
Dividends paid (11.4) (9.6) (11.4) (9.6)
Dividends payable/proposed (22.8) (19.2) (22.8) (19.2)
------ ------- ------- ------
35.9 29.9 35.9 29.9
New share capital subscribed
(including share premium) 16.4 6.5 16.4 6.5
Currency translation differences on
foreign currency net
investments 106.2 (129.0) 97.0 (129.0)
Related tax charge on currency
translation differences (10.2) - (10.2) -
Movement in treasury shares 8.2 (7.5) 8.2 (7.5)
----- ------ ----- -------
Net movement in equity shareholders'
funds 156.5 (100.1) 147.3 (100.1)
Opening equity shareholders'
funds 600.1 707.1 161.5 707.1
Prior year adjustments - (6.9) - (445.5)
------ ---- -------- -------
Closing equity shareholders'
funds 756.6 600.1 308.8 161.5
===== ===== ===== =====
INDEPENDENT NEWS & MEDIA PLC
GROUP BALANCE SHEET
1999 1998 1999 1998
(euros)m (euros)m (euros)m (euros)m
(Inc. (Inc.
Mastheads) Mastheads)
(as restated) (as restated)
Fixed assets
Intangible assets 1,669.4 1,103.4 1,236.6 679.8
Tangible assets 351.0 224.5 351.0 224.5
Financial assets
Investment in joint
ventures
- share of gross
assets 69.6 61.0 54.6 46.0
- share of gross
liabilities (44.1) (42.3) (44.1) (42.3)
---- ---- ---- ----
25.5 18.7 10.5 3.7
Investment in
associates 48.1 99.5 48.1 99.5
Other investments 6.2 19.4 6.2 19.4
-------- ------- ------- -------
79.8 137.6 64.8 122.6
-------- ------- ------- -------
2,100.2 1,465.5 1,652.4 1,026.9
Current assets
Stocks 24.5 15.2 24.5 15.2
Debtors 232.3 155.7 232.3 155.7
Cash at bank and in hand 195.9 111.4 195.9 111.4
----- ----- ----- -----
452.7 282.3 452.7 282.3
Creditors - amounts
falling due within
one year (247.2) (183.7) (247.2) (183.7)
Net current assets 205.5 98.6 205.5 98.6
Total assets less current
liabilities 2,305.7 1,564.1 1,857.9 1,125.5
Creditors - amounts
falling due after more
than one year 1,035.3 664.3 1,035.3 664.3
Provisions for
liabilities and charges 53.7 55.8 53.7 55.8
------- ----- ------- -----
1,089.0 720.1 1,089.0 720.1
Capital and reserves
Called up share capital 81.6 79.8 81.6 79.8
Share premium account 162.1 143.5 162.1 143.5
Revaluation reserve 364.4 364.4 (83.4) (74.2)
Other reserves (54.8) (138.0) (54.8) (138.0)
Profit and loss account 203.3 150.4 203.3 150.4
Equity shareholders'
funds 756.6 600.1 308.8 161.5
Minority interests
Equity minority interests 217.4 74.6 217.4 74.6
Non-equity minority
interests 242.7 169.3 242.7 169.3
----- ----- ----- -----
460.1 243.9 460.1 243.9
------- ------- ------- -------
2,305.7 1,564.1 1,857.9 1,125.5
======= ======= ======= =======
SEGMENTAL REPORT
The Group operates mainly in Ireland, the United Kingdom, South
Africa, New Zealand and Australia. The following is an analysis of the
Group's results by geographical market.
(A) GEOGRAPHICAL SEGMENTS
TURNOVER OPERATING PROFIT
1999 1998 1999 1998
(euros)m (euros)m (euros)m (euros)m
(as (as restated)
restated)
Turnover (By origin)
Group and share of
joint ventures and
associates 1,246.8 936.0
Less: Share of joint
ventures'
turnover (24.4) (21.9)
Share of
associates'
turnover (54.2) (115.3)
Group turnover 1,168.2 798.8
Ireland 310.5 278.8 63.3 53.9
United Kingdom 151.5 117.3 (4.8) 0.9
France - discontinued
operations - 19.0 - 2.6
South Africa 177.3 175.3 23.3 27.0
New Zealand
- continuing
operations 228.7 208.4 47.1 42.9
- acquisitions 24.5 - 2.9 -
Australia
- continuing
operations - - 24.7 -
- acquisitions 275.7 - 36.1 -
Provision for
restructuring - - - (48.9)
----------- -------- -------- ------
1,168.2 798.8 192.6 78.4
Group share of joint
ventures 24.4 21.9 2.5 2.7
Group share of
associates 54.2 115.3 3.3 12.6
Common costs (7.8) (6.8)
Exceptional gain on
sale of discontinued
operations net of
write down of
investments - 47.5
Net interest charge (47.9) (49.0)
Group profit on
ordinary activities
before taxation and
minority interests 142.7 85.4
Turnover by origin has been shown and does not differ materially
from turnover by destination. Turnover significantly relates to
external customers. The minority interest share of operating profit
for the financial year is 39.2m (euros) (1998: 8.4m (euros)). The
provision for restructuring in 1998 has not been analyzed by
geographical region in order to protect the Group's commercial and
legal position.
APN has been consolidated from the start of 1999. In 1998, the
Group's indirect share (41.5%) of APN's result was shown within
associates under equity accounting. The increased share (58.5%) of
APN's result has been classified under acquisitions in 1999. 100% of
turnover for 1999 has been shown under acquisitions.
The 1998 result for the UK subsidiaries includes 100% of
Independent Newspapers (UK) from April 1998 when the Group's
investment was increased from 46.42% to 100%.
(B) BY CLASS OF BUSINESS
The Group has three main classes of business:
- Printing, publishing and distribution of newspapers and
magazines and commercial printing
- Electronic media
- Outdoor advertising
The following is an analysis of the Group's results by class of
business.
TURNOVER OPERATING PROFIT
1999 1998 1999 1998
(euros)m (euros)m (euros)m (euros)m
-- -- -- --
(as (as
restated) restated)
Turnover:
Group and share of joint
ventures and
associates 1,246.8 936.0
Less:
Share of joint
ventures' turnover (24.4) (21.9)
Share of associates'
turnover (54.2) (115.3)
------ ------
Group turnover 1,168.2 798.8
------- ------
Printing, publishing,
distribution and
commercial printing
- continuing
operations 862.0 777.5 139.9 124.4
- acquisitions 152.7 - 16.0 -
Electronic media
- continuing
operations 6.0 2.3 8.6 0.3
- acquisitions 90.8 - 15.6 -
Outdoor advertising
- continuing
operations - - 5.1 -
- acquisitions 56.7 - 7.4 -
- discontinued
operations - 19.0 - 2.6
Provision for
restructuring - - - (48.9)
----------- --------- -------- ---------
1,168.2 798.8 192.6 78.4
======= ===== ----- ----
Group share of joint
ventures 24.4 21.9 2.5 2.7
===== ====== ----- ----
Group share of
associates 54.2 115.3 3.3 12.6
===== ====== ----- ----
Common costs (7.8) (6.8)
Exceptional gain on sale
of discontinued
operations net of
write down
of investments - 47.5
Net interest charge (47.9) (49.0)
------ ------
Group profit on ordinary
activities before taxation
and minority
interests 142.7 85.4
===== ====
The minority interest share of operating profit for the financial
year is ?39.2m (1998: (euros)8.4m). The provision for restructuring in
1998 has not been analyzed by class of business in order to protect
the Group's commercial and legal position.
INDEPENDENT NEWS & MEDIA PLC
PROFITS ANNOUNCEMENT
GROUP PROFIT AND LOSS ACCOUNT
1999 1998
IR(pound)m IR(pound)m
---------- -----------
(as restated)
Turnover
- Continuing operations 683.5 614.1
- Acquisitions 236.5 -
- Turnover from continuing
operations 920.0 614.1
- Discontinued operations - 15.0
----- -----
920.0 629.1
Operating profit
- Continuing operations 120.0 109.2
- Exceptional items (0.6) (42.6)
----- ------
119.4 66.6
- Acquisitions 31.5 -
- Exceptional items (0.8) -
Operating profit from continuing
operations 150.1 66.6
Discontinued operations - 1.8
Operating profit after
restructuring and
rationalization costs 150.1 68.4
Exceptional gain on sale of
discontinued operations net
of write down of investments - 37.4
Profit on ordinary activities
before interest 150.1 105.8
Net interest charge (37.7) (38.6)
Profit on ordinary activities
before taxation 112.4 67.2
Taxation on profit on ordinary
activities (27.0) (10.7)
Profit on ordinary activities
after taxation 85.4 56.5
Minority interests
(including non-equity minority
interests) (30.2) (10.3)
Profit on ordinary activities
after taxation and minority
interests 55.2 46.2
Dividends paid (9.0) (7.6)
Dividends payable/proposed (18.0) (15.1)
Retained profit for the Group
and its share of associates
and joint ventures 28.2 23.5
Earnings per share 21.83p 18.56p
Fully diluted earnings per share 21.19p 18.23p
Fully diluted earnings per share
before exceptional items and
amortization 24.19p 19.34p
STATEMENT OF TOTAL RECOGNIZED GAINS AND LOSSES
1999 1998 1999 1998
IR(pound)m IR(pound)m IR(pound)m IR(pound)m
---------- ---------- ---------- ----------
(Inc. (Inc.
Mastheads) Mastheads)
(as restated) (as restated)
Profit on ordinary
activities after
taxation and minority
interests 55.2 46.2 55.2 46.2
Currency translation
differences on foreign
currency net
investments 83.6 (101.6) 76.3 (101.6)
Related tax charge on
currency translation
differences (8.0) - (8.0) -
Profit on sale of
treasury shares 3.2 - 3.2 -
---- ------ -------- --------
Total recognized gains
and losses relating to
the year 134.0 (55.4) 126.7 (55.4)
Prior year adjustments - (5.4) - (350.8)
------- ------ -------- ---------
134.0 (60.8) 126.7 (406.2)
======= ====== ======= =========
RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS
1999 1998 1999 1998
IR(pound)m IR(pound)m IR(pound)m IR(pound)m
---------- ---------- ---------- ----------
(Inc. (Inc.
Mastheads) Mastheads)
(as restated) (as restated)
Profit on ordinary
activities after
taxation and minority
interests 55.2 46.2 55.2 46.2
Dividends paid (9.0) (7.6) (9.0) (7.6)
Dividends
payable/proposed (18.0) (15.1) (18.0) (15.1)
------ ------ -------- ------
28.2 23.5 28.2 23.5
New share capital
subscribed
(including share
premium) 13.0 5.2 13.0 5.2
Currency translation
differences on
foreign currency
net investments 83.6 (101.6) 76.3 (101.6)
Related tax charge on
currency translation
differences (8.0) - (8.0) -
Movement in treasury
shares 6.5 (5.9) 6.5 (5.9)
---- ----- ----- ----
Net movement in equity
shareholders'
Funds 123.3 (78.8) 116.0 (78.8)
Opening equity
shareholders' funds 472.6 556.8 127.2 556.8
Prior year adjustments - (5.4) - (350.8)
-------- --------- --------- -------
Closing equity
shareholders' funds 595.9 472.6 243.2 127.2
===== ===== ===== =====
INDEPENDENT NEWS & MEDIA PLC
GROUP BALANCE SHEET
1999 1998 1999 1998
IR(pound)m IR(pound)m IR(pound)m IR(pound)m
---------- ---------- ---------- ----------
(Inc. (Inc.
Mastheads) Mastheads)
(as restated) (as
restated)
Fixed assets
Intangible assets 1,314.8 869.0 973.9 535.4
Tangible assets 276.4 176.8 276.4 176.8
Financial assets
Investment in joint
ventures
- share of gross
assets 54.8 48.0 43.0 36.2
- share of gross
liabilities (34.7) (33.3) (34.7) (33.3)
---- ------- ------- ---------
20.1 14.7 8.3 2.9
Investment in
associates 37.9 78.4 37.9 78.4
Other investments 4.9 15.2 4.9 15.2
------- ------- ------- ---------
62.9 108.3 51.1 96.5
------- ------- ------- ---------
1,654.1 1,154.1 1,301.4 808.7
-------- ------- ------ --------
Current assets
Stocks 19.3 12.0 19.3 12.0
Debtors 182.9 122.6 182.9 122.6
Cash at bank and
in hand 154.3 87.7 154.3 87.7
-------- ------- ------- --------
356.5 222.3 356.5 222.3
Creditors - amounts
falling due within
one year (194.7) (144.6) (194.7) (144.6)
------ ------ ------ ------
Net current assets 161.8 77.7 161.8 77.7
------ ------ ------ ------
Total assets less
current liabilities 1,815.9 1,231.8 1,463.2 886.4
======= ======= ======= =====
Creditors - amounts
falling due after
more than one year 815.4 523.2 815.4 523.2
Provisions for liabilities
and charges 42.3 43.9 42.3 43.9
----- ---- ----- ----
857.7 567.1 857.7 567.1
----- ----- ----- -----
Capital and reserves
Called up share capital 64.3 62.9 64.3 62.9
Share premium account 127.7 113.0 127.7 113.0
Revaluation reserve 287.0 287.0 (65.7) (58.4)
Other reserves (43.2) (108.7) (43.2) (108.7)
Profit and loss account 160.1 118.4 160.1 118.4
----- ----- ----- -----
Equity shareholders'
funds 595.9 472.6 243.2 127.2
----- ----- ----- ------
Minority interests
Equity minority
interests 171.2 58.8 171.2 58.8
Non-equity minority
interests 191.1 133.3 191.1 133.3
----- ------ ------ ------
362.3 192.1 362.3 192.1
----- ------ ------ -------
1,815.9 1,231.8 1,463.2 886.4
======= ======= ======= =====
SEGMENTAL REPORT
The Group operates mainly in Ireland, the United Kingdom, South
Africa, New Zealand and Australia. The following is an analysis of the
Group's results by geographical market.
(A) GEOGRAPHICAL SEGMENTS
TURNOVER OPERATING PROFIT
1999 1998 1999 1998
IR(pound)m IR(pound)m IR(pound)m IR(pound)m
---------- ---------- ---------- ----------
(as restated) (as restated)
Turnover (By origin)
Group and share of joint
ventures and
associates 981.9 737.1
Less:
Share of joint
ventures' turnover (19.2) (17.2)
Share of associates'
turnover (42.7) (90.8)
------ --------
Group turnover 920.0 629.1
----- -----
Ireland 244.5 219.6 49.9 42.4
United Kingdom 119.3 92.4 (3.8) 0.7
France - discontinued
operations - 15.0 - 2.1
South Africa 139.6 138.0 18.4 21.3
New Zealand
- continuing
operations 180.1 164.1 37.1 33.8
- acquisitions 19.3 - 2.3 -
Australia
- continuing operations - - 19.4 -
- acquisitions 217.2 - 28.4 -
Provision for
restructuring - - - (38.5)
--------- ---------- -------- -------
920.0 629.1 151.7 61.8
======== ===== ----- ----
Group share of joint
ventures 19.2 17.2 2.0 2.1
======= ==== ---- ---
Group share of
associates 42.7 90.8 2.6 9.9
======= ===== ---- ---
Common costs (6.2) (5.4)
Exceptional gain on sale
of discontinued
operations net of write
down of investments - 37.4
Net interest charge (37.7) (38.6)
------ ------
Group profit on ordinary
activities before
taxation and minority
interests 112.4 67.2
===== ====
Turnover by origin has been shown and does not differ materially
from turnover by destination. Turnover significantly relates to
external customers. The minority interest share of operating profit
for the financial year is IR(pound)30.9m (1998: IR(pound)6.6m). The
provision for restructuring in 1998 has not been analyzed by
geographical region in order to protect the Group's commercial and
legal position.
APN has been consolidated from the start of 1999. In 1998, the
Group's indirect share (41.5%) of APN's result was shown within
associates under equity accounting. The increased share (58.5%) of
APN's result has been classified under acquisitions in 1999. 100% of
turnover for 1999 has been shown under acquisitions.
The 1998 result for the UK subsidiaries includes 100% of
Independent Newspapers (UK) from April 1998 when the Group's
investment was increased from 46.42% to 100%.
(B) BY CLASS OF BUSINESS
The Group has three main classes of business:
- Printing, publishing and distribution of newspapers and
magazines and commercial printing
- Electronic media
- Outdoor advertising
The following is an analysis of the Group's results by class of
business.
TURNOVER OPERATING PROFIT
1999 1998 1999 1998
IR(pound)m IR(pound)m IR(pound)m IR(pound)m
---------- ---------- ---------- ----------
(as restated) (as restated)
Turnover:
Group and share of
joint ventures and
associates 981.9 737.1
Less:
Share of joint
ventures' turnover (19.2) (17.2)
Share of associates'
turnover (42.7) (90.8)
-------- --------
Group turnover 920.0 629.1
-------- --------
Printing, publishing,
distribution and
commercial printing
- continuing
operations 678.8 612.3 110.2 98.0
- acquisitions 120.3 - 12.6 -
-
Electronic media
- continuing
operations 4.7 1.8 6.8 0.2
- acquisitions 71.5 - 12.3 -]
Outdoor advertising
- continuing operations - - 4.0 -
- acquisitions 44.7 - 5.8 -
- discontinued
operations - 15.0 - 2.1
Provision for
restructuring - - - (38.5)
-------- ------ ------- ---------
920.0 629.1 151.7 61.8
==== ===== ----- ----
Group share of joint
ventures 19.2 17.2 2.0 2.1
==== ===== ----- ------
Group share of
associates 42.7 90.8 2.6 9.9
==== ===== ---- ------
Common costs (6.2) (5.4)
Exceptional gain on
sale of discontinued
operations net of write
down of investments - 37.4
Net interest charge (37.7) (38.6)
----- ------
Group profit on
ordinary activities
before taxation and
minority interests 112.4 67.2
===== =====
The minority interest share of operating profit for the financial
year is IR(pound)30.9m (1998: IR(pound)6.6m).
The provision for restructuring in 1998 has not been analyzed by
class of business in order to protect the Group's commercial and legal
position.
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