APN News & Media has re-affirmed earnings guidance for the second half of calendar 2011 amid what it says are some encouraging signs in the advertising market.

The diversified media house says it is entering the “strongest trading period for the year and forward bookings are encouraging”.

APN said second half earnings before interest and tax (EBIT) was expected to print in line with the prior year, at $118 million.

The guidance was unchanged from last month, when thecompany reported a first half net loss on EBIT of $66.5 million and after writedowns on the asset values of its New Zealand newspapers.

APN said it was difficult to predict how advertisers would react to the recent volatility on financial markets.

“Second half trading to date is yet to move ahead of the prior period,” APN said in its interim report, published on Wednesday.

“However, APN remains confident that the company’s outdoor and radio market shares will continue to grow and first half cost-saving measures will have increasing effect throughout the balance of the year.”

The company owns newspapers radio stations and outdoor advertising and digital properties in Australia and New Zealand.