Revenue Falling, But Profit Up

Press, Volume CVII, Issue 31383, 31 May 1967, Page 19

Revenue Falling, But Profit Up

(New Zealand Press Association)

AUCKLAND, May 30. The decline in revenues from virtually all operations of New Zealand Newspapers, Ltd., in the last quarter to March 31, has continued, says the chairman (Mr T. H. Leys) in the annual report.

He adds that it is impossible to say whether this trend will be maintained or reversed in the second half of the year. Sales of the company rose £232,094, or 3.8 per cent, to £6,354,274 in the latest year, but expenses rose £221,386, or 3.3 per cent, to £5,039,822. The accounts confirm consolidated net profit at £453,062, an increase of £39,106, or 9.4 per cent. Mr Leys points out that this figure is slightly misleading as an index of the future as it includes the profit of some subsidiaries balancing on September 30, since when there has been some fallingoff in their returns. Economic trends were reflected by a fall of between 3 and 4 per cent in advertising volume over the whole

year in the company’s dailies and by a varying, but in some cases a greater, drop in other publications. Depreciation written off in excess of what is deductable for tax purposes amounted to £61,000, against £lll,OOO the previous year. Depreciation provision was £52,017 lower at £323,463 and tax was £27,417 higher at £542,565. Earning Rates

The profit represents 13.4 per cent on shareholders’ funds against 13.3 per cent last year, while earning rate on capital goes up from 22.8 to 24.7 per cent.

The steady 12} per cent dividend takes £229,542. Ordinary capital rose £23,700 to £1,838,500 after acquisitions and reserves rose £266,513 to £1,686,885.