Independent group cautiously optimistic for this year

Sir Anthony O'Reilly, executive chairman of Independent News & Media, said he was cautiously optimistic that the performance of the group, which owns The Independent and The Independent on Sunday, would be ahead of last year.

Speaking at the company's annual general meeting in Dublin yesterday, Sir Anthony said that circulation revenues were up right across the group in the first quarter of this year, and while advertising income had yet to regain the buoyancy of the first half of 2001, it was showing some vitality.

Sir Anthony told shareholders that "it was hard to experience a more surprising and, at times for all of us, a more alarming year than 2001.

"September 11 was a dramatic coda to all of this and caused almost all people everywhere to examine their lifestyles, ambitions and goals," he said.

He added: "We are unashamedly a multimedia company and have interests in television, radio, outdoor [advertising] and the press, but the durability of the press and the qualitative belief in its overall analysis transcends the other media and ensures that, while breaking news is the province of television and radio, a mature reflection and active commentary remain the province of the newspaper."

During 2001 the group saw a rise in turnover to €1.34bn (£860m) and a slight drop in profit from continuing operations, before interest and exceptional items, to €219.9m. INM took a €90.1m exceptional charge, which was mainly related to write-offs of start-up costs and investments in new media.

Sir Anthony defended this charge, saying it was far lower than equivalent charges made by rival media groups such as News Corporation, Trinity Mirror or Vivendi Universal. Many of the new media investments were made to protect the classified advertising markets built up by newspapers that the group owned and he proudly pointed to the 95 million page impressions per month being achieved by the 51 internet sites being operated by INM.

Sir Anthony praised the progress made by The Independent and by The Independent on Sunday during the year. He said that the titles were "now recognised as the voice of independent, authoritative journalism in Great Britain. As a centre of editorial excellence, the papers are now attracting the right sort of readers and advertisers."

He also pointed to the successful merger of APN in Australia with Wilson & Horton in New Zealand to create one of the top 50 companies in Australia, a group in which INM has a 45 per cent stake. He said that the combined group was now in a position to "exploit a real opportunity for further change to the media laws in Australia".

Independent News & Media shares rose 3.5p to 135p.