Independent News & Media (IN&M) is likely to sell further non-core assets in the second half of the year as part of its € 315 million recapitalisation programme, writes Emmet Oliver.
The company said it had realised more than €188 million already as part of the programme, but "further updates" would be forthcoming in the second half of the year.
The British Competition Commission is currently studying the company's proposed sale of 23 regional titles to the American group, Gannett.
If that sale goes through, IN&M will realise 88 million, bringing the total realised from the recapitalisation programme to 276 million. It has already raised €103 million from a rights issue, €65 million from the sale of convertible bonds in its APN subsidiary and 20 million from a share buyback.
However, if it is to meet the 315 million target, further action will be needed.
There has been speculation for some time about which non-core assets might be sold, with the company's stake in Portuguese newspaper publisher, Lusomundo, cited most often by market sources. Some analysts have also suggested that mobile data firm iTouch might be sold off. A spokesman declined to comment on possible future asset sales.
The company yesterday realised a pre-close trading update telling the market it would deliver a "meaningful improvement in earnings for 2003 in line with market forecasts". It releases its interim results on September 10th.
The group said its total revenue was ahead of 2002, with advertising particularly strong in southern hemisphere markets. It said it had launched several new products in its publishing businesses and these had achieved "good market traction".
The company said while recruitment and financial advertising was still weak, core classified advertising in areas like property, motors and retail remained robust.
"In addition, circulation revenues - throughout the world - continue to show good advances on 2002, reflecting the impact of cover price increases on the prior year, with increases in market share being achieved," said the statement.
The company said its lower debt levels, coupled with lower interest rates, would deliver a reduced interest charge for the year.
