INL profit takes a dive

By Phil Boeyen, ShareChat Business News Editor

Friday 16th February 2001

Lower profits in Australia, higher internet costs and losses from its Sky Television investment have pushed Independent Newspapers (NZSE: INL) interim profit down by 41%.

For the six months to the end of December the New Zealand publishing group made a profit of just under $14 million, down from $23.8 million the previous year.

The company says a solid performance from its New Zealand operations was offset by a profit decline from Australian newspaper publishing, and internet development and operating costs.

"In addition, the Sky Network Television's equity-accounted loss of $9.315 million was substantially higher than last year's loss of $2.317 million," the company says.

The company owns around 50% of Sky.

Losses from INL's internet operations increased from $479,000 to $2.138 million following the launch of its 'stuff' web site last June.

"Substantial launch and marketing costs were incurred during the period. Much of the costs were one off," it says.

Total operating revenue fell slightly to $290.8 million from $291.55 million the previous year.

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