Independent News & Media said today it still expected high single digit percentage growth in Irish advertising revenues in 2007, despite a slowing economy in its home market.
"What we've reaffirmed are projections for high single-digit growth in advertising revenue in the full-year 2007 for the Irish market," a spokesman for Dublin-based Independent News & Media said.
British regional newspaper company Johnston Press earlier said advertising revenue at its Irish operations fell 1.2 per cent in the five months to the end of November due to a slowing property market and the resulting economic slowdown.
Shares in Independent News, which also operates in Britain, South Africa, Australia, New Zealand and India, fell as much as 4.8 per cent following the trading update from Johnston.
Ireland accounted for about 25 per cent of Independent News' revenues in 2006.
The group's stock was almost 1 per cent lower at €2.17 by 11.30am on the Dublin market.
Goodbody analyst Philip O'Sullivan said the slowdown in Ireland was the primary reason why he expected operating profit growth at Independent News to slow to 2.1 per cent in 2008 from the 5.4 per cent anticipated for 2007.
"While we will monitor advertising trends in the coming months to see if our full-year 2008 estimates require revising, for now we are comfortable with our expectation that ongoing restructuring will hold operating margins reasonably constant ... in its home market next year," he wrote in a research note.
Independent News is due to publish a trading statement on December 20th.