The week has gone from bad to worse for APN News and Media as the trans-Tasman publisher reported a massive full year loss amid further writedowns on its newspaper assets.
Having already lost a chief executive, chairman and three board members earlier this week, APN on Thursday posted a net loss of $455.8 million for the 12 months to December 31, a severe deterioration from a $45.1 million loss in the prior year.
The result was hurt by a $151 million impairment charge on its publishing assets in Australia and New Zealand, announced alongside the full year results on Thursday, as well as a $485 million impairment announced in August 2012.
Excluding one-off items, APN said full year net profit came in at $54 million, down from $78 million in the prior corresponding period and within company guidance.
Revenue fell 13 per cent to $929 million, APN said in a statement.
A boardroom rout led by APN’s two major shareholders led to the departure of Peter Hunt as chairman, Brett Chenoweth as chief executive and independent directors Melinda Conrad, John Harvey and John Maasland this week.
The two major shareholders – Ireland-based Independent News and Media (INM) and funds manager Allan Gray – were against a proposed capital raising as a way to deal with APN’s debt pile.
Peter Cosgrove, a former director at INM, was appointed chairman on Tuesday and leadership advisory firm Heidrick & Struggles was helping APN find a new chief executive and board members.
In the meantime, APN said on Thursday the company was “being overseen by a leadership team” comprised of the chairman, deputy chairman and chief financial officer.
APN said the company reduced net debt by $180 million to $465.2 million in 2012 through asset sales, the formation of a joint-venture over its outdoor advertising business and a focus on cash management.
There would also be no final dividend for 2012.
The company flagged a further debt reduction of between $40 million and $50 million in 2013 through “organic earnings”, cost reductions and small asset and property sales.
“The structural changes to media together with the weak advertising markets have impacted the results,” Mr Cosgrove said in a statement.
“Work has been done to reposition the business and we are seeing encouraging improvements.”
Mr Cosgrove said the company achieved $25 million in cost savings in 2012, and was expecting a further $25 million reduction in calendar 2013.
APN shares ended up a quarter of a cent at 27.25 cents, as the company said trading had been positive in the early part of 2013.
