INM 'stable' after debt restructuring

Irish-based media group Independent News & Media said today that it expected to see continued "improvement in operating profit" this year if advertising trends "experienced so far this year continue". The INM chief executive, Gavin O'Reilly, said at the company's annual general meeting in Dublin today that following a successful debt restructuring in 2009 it was now in a period of "financial stability as global markets begin to recover". "2009 was an extraordinarily challenging year at both the operating and financial level, but happily that is now firmly behind us. Following the successful 2009 financial restructuring, in which INM significantly reduced its indebtedness and secured a new four-and-a-half-year bank package, the group has entered into a period of financial stability as global markets begin to recover," O'Reilly told INM shareholders. "As such, I am pleased to report that the trading trends that we announced to the market as part of our interim management statement on 24 March last have continued, with the year-on-year trend in underlying advertising revenue improving marginally since the first quarter and the year-on-year cost trend being maintained," he added. "Overall, we are experiencing more stability in our trading performance across each of our regions, though aggregate advertising revenues have yet to show growth on the prior year and advertising conditions remain volatile. Although economic conditions remain uncertain, with INM's strong operating leverage, we would continue to target an improvement in operating profit for 2010 if the trading trends experienced so far this year continue." INM, which operates in countries including Ireland, the UK, South Africa, Australia and New Zealand, made a pre-tax loss of €31m (£25.9m) in 2009 , down from €161m (£134.4m) the previous year. The company's operating profit fell 39% year on year, before exceptional items, to €177m. INM revealed in March that it had reduced debt levels by €266m in 2009 through a complex financial restructuring to stand at €1bn as at 31 December. Last year the company raised €92.2m through the rights issue, allowing it to complete the repayment of an outstanding €200m bond and the interest that had accrued on it. The first stage in the financial restructuring plan, a debt-for-equity swap, handed bondholders €122m by giving them 46% of the company's shares. INM completed the sale of the Independent and Independent on Sunday to Russian businessman Alexander Lebedev in late April . Lebedev bought the Independent titles for a nominal sum of £1, with INM paying Independent Print Limited, the company set up by the Russian to publish the titles, £9.25m over 10 months. In exchange, IPL is assuming "all future trading liabilities and obligations". INM said the Independent titles lost £12.4m in 2009. • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".