Download - Full Year Results 2001
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Full Year Results 2001
17th April 2002
Independent News & Media PLC
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GLOBAL VISION LOCAL CONTENTGLOBALISATION DELIVERING GROWTHGlobal Portfolio of Leading BrandsMarket LeadersStrong Cost ManagementHighly CASH generative business
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Circulation Revenue UP + 7.2%Newspaper Advertising Revenue only down (1.6%)But UP in constant currency by + 4.5%
Operating Costs down despite Newsprint Price increase Operating Margins maintained at 2000 levels Successful 105m share placementSuccessful restructuring of Australasian assets2001 HIGHLIGHTS
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RESTRUCTURING OF AUSTRALASIAN ASSETSSale of Wilson & Horton to APN News & Media
Total cash gain on sale of 53.7m, with 32.5m recognised in P&L (39.5% deferred as inter-group)
Cash received by Group of 455m less re-investment in APN of 241m; net inflow 214mIncreased shareholding in APN to 44.55%EPS enhancing for both Independent & APNOpens new opportunities in Australasia
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PEER GROUP COMPARISON 2001
Sheet1
NewspaperNewspaper
TotalAdvertisingCirculationOperating
RevenueRevenueRevenueProfit
Independent News & Media *-0.1%-1.6%+7.2%+0.0%
Trinity Mirror - Nationals-2.4%-4.2%-0.1%-0.19%
Hollinger - UK Newspapers-9.0%-10.6%-1.2%-49.9%**
Pearson - Financial Times-5.1%-20.0%n/a-27.0%
John Fairfax Holdings ***-10.7%-10.8%n/a-47.2%
West Australia Newspapers ***-15.4%-12.0%-3.1%-30.6%
New York Times Company-10.6%-15.7%+3.1%-39.3%
Knight-Ridder Inc-9.7%-10.1%-2.2%-30.9%
* Excluding exceptionals and share of results of JV's & associates
** 12 months EBITDA
*** 6 months ended 31 December 2001
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PEER GROUP EXCEPTIONAL CHARGES 2001
Sheet1
Exceptional Charge
millions
Independent News & Media(90.1)
Trinity Mirror(268.3)
Hollinger(348.3)
Pearson(360.3)
News Corporation *(903.6)
Telewest(1,817.6)
AOL Time Warner(2,833.7)
Vivendi(12,640.0)
* 6 months
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2001 HEADLINE NUMBERS
Sheet1
20012000Change
millions millions%
(as restated)
Group Turnover1,341.41,342.5-0.1%
Operating Profit *218.4218.40.0%
Net Exceptional Items(57.6)3.0
Profit Before Tax61.8155.3-60.2%
Net Profit3.180.8-96.2%
Earnings per Share (EPS) **12.5015.92-21.5%
Dividend per Share (DPS)7.757.503.3%
Weighted Shares Outstanding (m)532.7514.43.6%
Operating Margins *16.28%16.27%0.08%
* Excluding exceptionals and share of results of JV's & associates
** Before exceptional items and amortisation
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2001 SUMMARY BALANCE SHEET
Sheet1
31 Dec. 200131 Dec. 2000Change
millions millions millions
(as restated)
Fixed Assets *2,9252,584341
Other Net Assets/ (Liabilities)(2)53(55)
Net Bank Debt(1,056)(1,493)437
Capital Lease Liabilities(249)(7)(242)
Total Shareholders' Funds1,6181,137481
Interest Cover (EBITDA/Interest)2.7x3.7x
Total Net Debt ** to EBITDA4.8x5.7x
* Including the revalued elements of mastheads
** Net Bank Debt plus Capital Lease Liabilities
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2001 SUMMARY CASH FLOWS
Sheet1
20012000Change
millions millions millions
Operating Cash Flow227.3246.5(19.2)
Interest & Minority Dividends(138.3)(111.8)(26.5)
Taxation(20.5)(37.7)17.2
Capex & Financial Investment(120.1)(220.1)100.0
Acquisition of Subsidiaries(32.7)(504.3)471.6
Equity Dividends(38.1)(33.1)(5.0)
Share & Note Issues325.47.2318.2
FX Movement & Other(7.6)22.7(30.3)
Reduction/(Increase) in Net Debt195.4(630.6)826.0
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GROUP TURNOVER BY MARKET: 1,341.4m
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GROUP PROFIT BY MARKET: 229.6m ** Excluding exceptional items
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10 Year C.A.G.R.Turnover + 21%Operating Profit * + 27%Pre-Tax Profit + 21%Earnings Per Share * + 12%Dividends Per Share + 14%Earnings per Share ()(Fully diluted before exceptionals & goodwill amortisation)* Excluding exceptional itemsEARNINGS PER SHARE: 10 YEAR PERFORMANCE
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Revenue up, driven by cover price and advertising rate increases Continuing strong cost managementStrong performance from RadioExpansion of security printing to AustraliaAcquired by APN in Dec. 2001 & achieved targets in APN Explanatory MemorandumRevenues strengthening into 2002No. 1 NEWSPAPER publisherNo. 1 REGIONAL publisherNo. 1 RADIO operator No. 1 COMMERCIAL PRINTERNo. 1 SECURITY PRINTERNo. 1 News Website
Turnover by Activity
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOKNEW ZEALAND DIVISION
Sheet1
'm (constant FX)20012000Change
Turnover292.7282.43.6%
EBITDA79.072.09.7%
Operating Profit61.655.411.2%
Operating Margin21.0%19.6%
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Tough advertising market in 2001 Continuing tight cost controlAchieved 2001 targets set out in APN Explanatory MemorandumKey tender & license wins for Outdoor & RadioExpansion into fast-growing Asian market on-trackNo. 1 REGIONAL publisherNo. 1 OUTDOOR operatorNo. 1 Australasian RADIO operator JV in Pan TVs World MoviesGrowing Asian OUTDOOR business
Turnover by Activity
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOKAUSTRALIAN DIVISION
Sheet1
'm (constant FX)20012000Change
Turnover306.9325.1-5.6%
EBITDA78.187.0-10.2%
Operating Profit63.271.9-12.1%
Operating Margin20.6%22.1%
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Revenue growth from both circulation & advertising Circulations: 10 out of 14 titles UP all competitors significantly down Strong cost managementOutdoor Acquisition - EPS enhancingRealisation of Pension Fund surplusNo. 1 METROPOLITAN/ NATIONAL publisher (14 out of 25 titles)
No. 1 OUTDOOR operator (55% share) through acquisition of JV with Clear Channel
No. 1 News Current Affairs Website
Turnover by Activity
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOKSOUTH AFRICAN DIVISION
Sheet1
'm (constant FX)20012000Change
Turnover194.9189.03.1%
EBITDA31.128.78.4%
Operating Profit27.124.311.5%
Operating Margin13.9%12.9%
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Core circulations UP Aggressive cover pricingAttractive advertising readership profilesStrong cost control headcount down 8.5%Newsprint price reductions achieved for 2002Leading NATIONAL titles in G.B.
No. 1 PUBLISHER in Northern Ireland
No. 2 London REGIONAL publisher
No. 1 RECRUITMENT mag. Publisher
No. 1 EDUCATIONAL mag. Publisher
Turnover by Activity
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOKUNITED KINGDOM DIVISION
Sheet1
'm (constant FX)20012000Change
Turnover253.8210.020.9%
EBITDA25.416.157.8%
Operating Profit17.612.441.9%
Operating Margin6.9%5.9%
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Successful commissioning of CITYWESTStrong ADVERTISING growth & significant gains in MARKET SHAREStrong CIRCULATION growth-Irish Independent achieves 19 year high-The Star achieves all-time highStrong cost management & Newsprint price reduction
No. 1 NATIONAL publisherNo. 1 REGIONAL publisherNo. 1 COMMERCIAL PRINTERNo. 1 WHOLESALER/ DISTRIBUTOR
Turnover by Activity
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOKIRISH DIVISION
Sheet1
'm20012000Change
Turnover370.9335.910.4%
EBITDA83.974.113.2%
Operating Profit73.266.310.4%
Operating Margin19.7%19.7%
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NEW MEDIAPRUDENT New Media strategy and executionExtension of CORE brandsPro-active costmanagement Headcountdown 43% from high pointduring 2001Significant REDUCTIONin losses, as forecastedMinimal investment exposure - 11.5m, excl. iTouch & Chorus
Sheet1
NEW MEDIA STATS
'm20012000
Turnover7.47.7
Operating Losses(6.8)(10.0)
Group Web Stats:
No. of Web Sites5148
Page Impressions / month95m100m
Headcount158203
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Excellent 2001 260% revenue growth on 2000Six consecutive quarters of good growthControlling costs Cash outflow, excluding acquisitions, only Stg7.7mKey acquisitions during 2001Growth continuing into 2002Well positioned for mobile future with:-
Fully funded business model Stg36.1m in handPowerful international relationshipsCarrying value supported by current market valueiTOUCH PLC
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GEOGRAPHICALLY diversified - with tight focus on core competencies
Unique BRAND leadership positions - dominant in 4 out of 5 markets
Major capital expenditure programme now COMPLETED
HIGHLY cash generative businessSignificantly REDUCED exposure to New MediaClear strategy for operating margin ENHANCEMENTSSUMMARY
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OUTLOOKCORE businesses performing wellCIRCULATION revenues trending UPADVERTISING showing signs of vitalityContinued focus on COSTS run rate downInterest costs DOWNGLOBAL diversity underpinning growthCautiously optimistic for IMPROVEMENT on 2001
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GLOBAL VISION LOCAL CONTENTIndependent News & Media PLCFull Year Results 2001
17th April 2002