N.Z. News to pay 7c

Press, 5 November 1977, Page 18

N.Z. News to pay 7c

The directors of New Zealand News, Ltd, have declared an increase in the interim dividend, from 6c a share to 7c a share (7 per cent), in spite of a fall of 4.1 per cent to $1,304,484 in unaudited group net profit in the six months to September 30.

However, adjusted for inflation, the profit is down 16.2 per cent on the previous corresponding period, the directors say. Sales increase 19.5 per cent to $20.2M.

The profit covers the 24week trading period to September 10 for the parent company and the principal subsidiary, New Zealand Newspaper, Ltd, and the six months to September 30 for the other subsidiary companies of the group, except for the four companies acquired from Universal Business Directories, Ltd, in August. Profits from these companies have been brought in for six weeks only.

Advertising in the daily newspapers has remained buoyant, although since October 1 the situations vacant advertising in particular has shown a marked decline.

It is plcasmg tu note that the “N.Z. Woman’s Weekly” made a substantial improvement in circulation and advertising. The “N.Z. Farmer” magazine had also shown worthwhile results, the directors say. The result of Comprint, the commercial printing division at Wiri, had eased slightly, but resulting export incentives were beneficial from an income tax point of view.

Suburban newspapers in Auckland and Christchurch have continued to maintain an adequate contribution to group profit. Vid-Com, Ltd, the videotape production and processing company is now an important contributor to profits. Labour, material and distribution costs had continued to rise and the increased prices for newsprint of the Tasman Pulp and Paper Company, Ltd, announced on Thursday made it difficult to forecast what the final result would be for the year to March 31. The interim dividend is payable on December 1, ex dividend November 14.