O’Brien attacks INM
Denis O’Brien, a major shareholder in Independent News & Media (INM), has called on the group to “urgently” review the operations of its flagship titles The Independent and Belfast Telegraph after first-half profits tumbled.
While the group grew its underlying revenues by three per cent in the six months to 30 June, adjusted earnings per share fell 6.3 per cent.
Despite this the publisher said it would still be able to meet full year profit consensus forecasts.
Operations in South Africa, Australasia and India remained relatively buoyant but UK business suffered a sharp downturn, with revenues down 14 per cent to €115.6m and operating profits down nearly 36 per cent to €4.7m compared to the same period the previous year.
Group revenues slipped 3.7 per cent to €780.4m, but the group said this was mainly due to adverse currency movements. Group chief executive Anthony O’Reilly said it was a good performance in challenging markets.
But “dissident investor” O’Brien, who owns a 25 per cent stake in INM said he was alarmed that the group’s net debt had increased. “Decisive moves are needed urgently, perhaps starting with a close look at whether The Independent and Belfast Telegraph are contributing anything worthwhile to the group,” he said.