N.Z. News loses on ‘Sun’

Press, 4 March 1988, Page 12

N.Z. News loses on ‘Sun’

PA i ■ j Auckland li I The I interim profit of N.Z. ■ NewS — before extraordinary items — has diyed. j For the | six months ended December 31, taxpaid j operating profit slumped fi;om $5,237,000 to $175,000; reflecting the costs of launching the daily j newspaper, the "Auckland |Sun.” There was an operating loss of $706,000 before tax (previously a $10,004,000 profit) but!a tax credit of $1,044,000 I (compared with a provision for payment 1 by i N.Z. News of $4,707,000) brought the aftertax profit to $338,000 ($5,297,000). The chairman of N.Z.

News, Mr Leicester Steven, said it had cost far more than planned to launch the "Sun.” Though it would have been possible to capitalise a significant part of the costs, the directors had chosen the conservative policy of excluding intangible assets from the group accounts and had brought the establishment costs through the profit and loss account. Initial "Sun’l circulation reflected the public’s curiosity, but it was now ahead of budget and'rising, he said. The full-year results would again j reflect the high and continuing cost of establishing the "Sun.” The directors have de-

clared an unchanged' interim dividend of 5c a share, payable on April 7. Revenue was aheaq for the period at $103,851)000, compared with $96,898,000 last year,) but the pre-tax operating result was a lossi of $706,000, compared with a profit of $10,004,000) last year. I Minority interests took $30,000 ($73,000) ) and share of associated comipanies losses (took )$133,000 (compared iwith

a profit of; $13,000). Extraordinaries were boosted to $9,925,000 from $99,000 in 1986) by the sale of shares in Southern Petroleum. This brought the final interim profit to $10,100,000, compared with $5,336,000 for the six months ended December 31, 1986. ) The value of shares under the bonus issue plan is 233 c, compared with a last price of 260 c on the market this week.