INDEPENDENT Newspapers Holdings, the South African subsidiary of Independent Newspapers, has reported a 33 per cent rise in pretax profits to 51.9 million rand (£6.63 million) in the six months to the end of June last.
Interim figures for the group, issued yesterday, show a 17 per cent rise in turnover on the same period last year to 492 million rand. Much of the increase was due to better advertising and circulation revenues and tighter control on spending, it said.
Independent Newspapers Holdings has declared a dividend of 30 cents per share, which will be paid to shareholders in September.
The addition of new publications Business Report, The Sunday Independent and Sunday Life to its stable of titles boosted advertising and circulation profits according to the company. The group also launched Personal Finance in March. The impact of these publications would not have been included in corresponding figures for 1995.
"These new ventures are at an early stage of their development and have not yet reached their full potential," a statement said while turnover from commercial printing and publishing activities also showed strong growth.
On its prospects for the rest of the year, Independent Newspapers Holdings said it believed the economic outlook had recently become less certain with "noticeable signs" of a slowdown in consumer spending, particularly in the advertising sector.
Despite this trend, the company said it expected to show a satisfactory improvement on its 1995 performance. And no new capital expenditure has been sanctioned over the 12 month period.
Since June, Independent Newspapers Holdings has stepped up its interests in South Africa through the acquisition of the consumer publications group, Penta Publications in a consortium with. SMC Capital.
SMC and Independent Newspapers Holdings are already partners as publishers of The Star and 54 Times International, which is printed in London and Sydney and is aimed at South Africans living overseas. No price for the acquisition has been disclosed, but the SMC Independent joint venture is buying Penta from a provisional liquidator.
Penta Publications publishes six magazines, including De Kat Tribune and Living Africa. All of these will continue to be published. The group is also currently bidding for a number of radio licences in South Africa.
Independent Newspapers Holdings is quoted on the Johannesburg Stock exchange. It is 58 per cent owned by Independent Newspapers.
