APN says Queensland floods, ChCh quake cut A$9M off EBIT

APN says Queensland floods, Christchurch quake shave A$9M from 1st-qtr EBIT

March 21 (BusinessDesk) – APN News & Media, the publisher whose shares have shed a third of their value in the past 12 months, said the Queensland floods and Christchurch’s earthquake will shave about A$9 million from first quarter earnings.

The Sydney-based media company said earnings before interest and tax in New Zealand would fall about A$4 million, including an A$1 million impact from the weaker kiwi dollar against the Australian dollar. The company doesn't publish quarterly numbers and gave no context for the A$9 million figure. First-half EBIT was A$87 million last year.

“It has become clear that the Christchurch earthquake on 22 February has impacted an already subdued New Zealand economy, particularly rural and regional New Zealand,” the company said.

“Although the Queensland economy is still volatile, it is expected that Queensland will recover and return to its strong growth trajectory,” the company said. “Despite its current weakness, the New Zealand economy is forecast to return to growth in 2012” helped by the central bank’s decision to slash its benchmark interest rate to 2.5%.

The shares rose 0.7% to A$1.52 on the ASX today. They were at A$2.30 a year ago.

(BusinessDesk)

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