APN News & Media, which is 43 per cent owned by Independent News & Media, has announced a 24 per cent rise in first-half net profits and set out plans for a refinancing that will raise at least 99 million Australian dollars (€56 million).

The Australian media group, which publishes 24 daily and 90 non-daily newspapers in Australasia, reported net profits of A$44.7 million in the first six months of this year, ahead of analysts' expectations of A$42.5 million.

The figures were boosted by an exceptionally strong performance from APN's newspaper operations in Australia and New Zealand, where profits grew by 27 per cent to A$76.6 million.

Radio saw a 9 per cent increase in earnings to A$21.5 million, while the group's outdoor business posted an 8 per cent rise in profits to A$7.8 million.

Chief executive Mr Brendan Hopkins said trading in the first half of 2003 had been very positive and the start of the second half had been encouraging. "The major trading divisions continue to trade in line with or above expectation," he said.

"Given a continuation of current trading conditions, the company is on target to meet the double-digit consensus profit growth forecasts for recurring earnings for the 2003 full year."

The group also announced plans for a refinancing, which will see it place 28 million shares, or 6.3 per cent of the share capital, to raise a minimum of A$99.4 million before costs. The proceeds will be used to reduce debt.

Independent is not expected to subscribe for new shares in the placing, which will reduce its shareholding in APN from 43 per cent to 40.7 per cent.

A company spokesman said Independent did not "consider it appropriate to take up its entitlement when the group itself was clearly undertaking a capitalisation programme". APN is also reviewing its banking facilities, a process that is expected to be completed by the end of the year.

"Due to the favourable market conditions in domestic and international debt markets, directors expect that significant benefits in pricing, maturity and terms can be achieved," APN said.

The overall refinancing, which will replace the expensive acquisition-style facilities put in place to fund APN's A$1.2 billion purchase of New Zealand publisher Wilson & Horton in 2001, is expected to boost earnings, although the company did not say by how much.

While its publishing and radio divisions performed well in the first half, APN has undertaken a restructuring of other divisions that are facing a tougher time.

Changes to its outdoor division, where revenues are less buoyant than in press and radio, have resulted in the closure of some Asian markets and a decision to rationalise the Australian Posters business unit.

APN's print and specialist publishing division, which recorded a 32 per cent drop in earnings to A$2.6 million, has also been subject to considerable restructuring, the company said.

APN also announced yesterday that its former chief executive, Mr Vincent Crowley, has retired from the board.