Independent News & Media (IN&M) said it expects a ten per cent fall in operating profit this year to between €240 million and €270 million and that its share price “does not fairly reflect” the strength and value of the company.
IN&M also said it has decided to retain its share of Australasian media unit APN because it did not receive an acceptable offer. The group said it has indentified alternative assets to be sold but declined to name which ones.
Any disposals would be “non-strategic core assets” and those which are loss-making.
The group is under pressure to meet a €200 million debt maturing in May.
IN&M is forecasting revenues of €1.4 billion for the year ending December 31st, down approximately 3 per cent compared with last year.
According to the statement, IN&M does not anticipate any improvement in global advertising revenues and is forecasting a contraction of up to 6 per cent for 2008.
The statement notes that staff in the Republic and UK have accepted comprehensive payroll savings.
No final dividend will be paid for 2008 as the group said it is trying to "maximise cash flow". In 2007 IN&M paid dividends of €60.2 million.
IN&M’s share price has fallen sharply in recent weeks although it rose 7 per cent to 20.5 cent in early trade in Dublin today.
It’s share price has fallen by over 50 per cent so far this year and is over 90 per cent lower over the last 12 months. At its current share price the group has a market capitalisation of €172 million.
IN&M will release its full-year results on March 31st.
