Independent News & Media PLC Announces 1999 Results; Pre Tax Profit Up 68% To -euros- 143 Million; Independent Digital Growing Strongly

Business Wire, March 29, 2000

Business Editors

DUBLIN--(BUSINESS WIRE)--March 29, 2000

The Board of Independent News & Media PLC today announced year-end results for the 54 weeks ending 31st December 1999. Independent News & Media PLC operates in Australia, Ireland, New Zealand, South Africa and the United Kingdom and has three core businesses: publishing; electronic media and outdoor advertising. Independent Digital is leveraging these three core businesses for enhanced growth and performance.

RESULTS                              1999          1998         Change
-------

                                 (euros)m       (euros)m             %
                                       --            --           ----

Turnover                            1,168           799           46.2
Operating profit(a)                   192           139           38.1
Profit before tax                     143            85           68.2
Fully diluted earnings per share(b) 30.72c        24.56c          25.1
Dividends per share                 13.33c        11.43c          16.7

HIGHLIGHTS FOR THE YEAR

- Strong performances in Ireland, Australia and New Zealand.

- iTouch expands internationally.

- Unison launches "Internet on TV" initiative in Ireland.

- UK Independent makes circulation gains - losses reduced.

- South African economy set for recovery.

- (euros)200 million 10 year bond issued at coupon of 5.75%.

- Group restructuring plan substantially completed.

- Successful bid for Belfast Telegraph since year end.

(a) Continuing activities before exceptional items

(b) Before exceptional items and amortization

Commenting on the results and prospects Dr. A.J.F.O'Reilly, Chairman said:

"After a challenging start to the year, when many economies were only emerging from the Asian crisis, your Group achieved steady and sustained performance growth throughout 1999, demonstrating the vitality and breadth of our market leading brands. Since 1973 the compound annual return to shareholders with dividends reinvested is 27%.

"Our restructuring plan is achieving significant savings in our core operations, and Independent Digital is producing tangible results in the new media area. I believe the current year will bring further growth and exciting developments for your Group."

INDEPENDENT NEWS & MEDIA PLC

ANNOUNCEMENT OF RESULTS

FOR THE 54 WEEKS ENDING 31st DECEMBER 1999

PRE TAX PROFIT UP 68% TO (euros)143 MILLION

INDEPENDENT DIGITAL GROWING STRONGLY

Independent News & Media PLC announces record turnover of (euros)1.17 billion for the 54 weeks ending 31st December 1999 compared with (euros)799 million in 1998, an increase of 46%.

Group operating profit from continuing operations before exceptionals at 192 million is 38% up on the 1998 figure.

Fully diluted earnings per share, excluding exceptional items and amortization were 30.72c, up 25% from 24.56c in 1998.

Independent News & Media is a fast growing international media and communications Group. Ten year performance in terms of shareholder return, is a very impressive 25% compound per annum. Annual EPS growth (fully diluted before exceptionals and amortization), is a very satisfactory 14.3%. In the same ten year period, the Group achieved a 22% compound annual growth in turnover, 27.3% in operating profits before exceptional items, 31.4% in pre tax profits and 14.9% in dividends per share. Market capitalization to date has grown from (euros)115 million to over (euros)2.6 billion since 1990. A shareholder who invested the equivalent of (euros)1,000 in 1990, with dividends reinvested, has a holding currently worth (euros)9,600. Since 1973, the compound annual return to shareholders with dividends reinvested is 27%.

The Board is recommending a final dividend of IR7p (8.89c) per share, making a total dividend for the year of IR10.5p (13.33c), an increase of 16.7% on 1998. A scrip issue alternative is again available to shareholders. Relevant Share Certificates and/or Dividend Warrants will be posted on 31st May 2000 to ordinary shareholders registered at the close of business on 14th April 2000.

Operations

In Australia, APN News & Media reported a 56% increase in operating profits to a record A$109.3 million ((euros)66.1m) together with a 20% increase in net profit after tax and minority interests to A$42.4 million ((euros)25.6m). This is the company's seventh consecutive year of profit and dividend growth since its flotation in 1992.

APN is 41% owned by Independent News & Media PLC and is the top performing media stock in terms of EPS growth in Australia over the last five years. APN is the largest operator of regional newspapers, radio stations and outdoor advertising in Australasia and achieved double digit growth in each of these divisions, confirming the success of the company's unique multi-media strategy.

The Outdoor Advertising division in particular had a very successful year, increasing operating profits by 51%.

In the Regional Newspapers division, solid growth continued with operating profits up by 11% over the previous year.