Independent News and Media's 40 per cent-owned Australian subsidiary had profits of A$130 million (€78 million) last year, the company said yesterday.

APN News and Media, in which Independent has a 39.7 per cent stake, said yesterday that sales in 2004 grew 12 per cent to $1.3 billion.

Group earnings before interest, tax (EBIT) and exceptional items were up 19 per cent at $282 million. After a $1.6 million charge to cover non recurring items, EBIT was up 18 per cent on 2003 to $280 million. APN's net profit after tax and exceptional items was $128.3 million. Before exceptionals, profits were up 26 per cent, a record $130.2 million, the group said yesterday.

Earnings per share were up 17 per cent to 26.9 cents. The board declared a final dividend of 14 cents, bringing the full-year dividend to 22 cents per share. During the year APN spent $6.8 million on launching a number of new products, including the Herald on Sunday in Auckland, New Zealand, and a number of regional titles in Australia. It also completed a number of developments with existing products.

APN publishes newspapers in Australia and New Zealand, and has interests in radio, outdoor advertising and printing and specialist publishing.

The largest single contributor to earnings during the year was its New Zealand national publishing division, which had EBIT of $102.9 million, an increase of 16 per cent on 2003.

However, its regional newspapers business delivered stronger growth, with EBIT increasing year-on-year by 24 per cent to $100.2 million.

The company said that its regional newspapers division, which covers Australia and New Zealand, performed ahead of expectations.