DUBLIN-BASED Independent News Media (IN&M) said yesterday that its underlying advertising revenue had “improved marginally” since the first quarter of 2010 and on year-on-year basis.
Speaking to the media after the group’s annual general meeting yesterday, chief executive Gavin O’Reilly said he was comfortable with brokers’ forecasts for the company’s operating profit this year, which range from €220 million to €240 million.
“I would be happy with that,” he said, noting that last year’s comparable figure was €177.2 million.
He added that its top-line revenue would rise by 1-2 per cent this year but tight cost management would boost profitability.
Mr O’Reilly had earlier told shareholders that “small green shoots” of recovery were appearing but not in Ireland, where advertising revenues slumped by 35 per cent in 2009 as the domestic economy imploded.
“Ireland is fairly challenging,” he told reporters.
IN&M shareholders yesterday approved a major restructuring of its share capital base, which will see investors receive one new share for every seven they hold. IN&M currently has just under 3.5 billion shares in issue.
Mr O’Reilly said this would improve IN&M’s share price, enhance liquidity and make it easier to market the stock.
After the meeting, when asked by reporters if he still considered Denis O’Brien to be a dissident investor, Mr O’Reilly said: “Denis O’Brien is a significant shareholder and certainly not a dissident shareholder at all.”
Mr O’Brien owns 18.6 per cent of IN&M, making him its biggest shareholder.
The IN&M agm was a muted affair with just long-time stockholder Kevin Anderson asking a question. Mr Anderson described it as the “most boring meeting” the company had ever held, before criticising a resolution to allow directors issue more shares.
He also criticised the content and layout of the auditor’s reports. “It’s a lot of nonsense . . . it means nothing.”
IN&M chairman Brian Hillery responded by expressing his confidence in its auditors, PricewaterhouseCoopers.
Mr O’Reilly said most of the bondholders who had forced a major financial restructuring of INM last year, which led to shareholders being diluted, had since sold out. It is understood that Bank of Ireland, FBD and Invesco have sold about 410 million INM shares between them since December.
