Independent News and Media shows healthy UK results

Independent News and Media (INM), the Dublin-based publisher of loss-making The Independent, has reported pre-tax profits of more than 286m euros (£223m) for the year ending 31 December 2007, an increase of 7.7% on the previous financial year.

At the same time, the publisher lashed out at one of its main shareholders, dubbing him a "dissent shareholder" for his constant criticisms of its business strategy.

Despite the buoyancy of the report, in some quarters 2007 was a rough time for INM. The group cut more than 550 jobs at newspapers including The Independent, The Irish Independent and regional Australian titles last year, as it outsourced production work, resulting in net costs of €37.7m.

But overall, revenues were up by 2.3% from €1.636bn to €1.674bn. In a statement, the group said that it is continuing to outperform its peers and that advertising revenues grew by 5.4% and circulation revenues by 0.6%. It added that all of its "business and geographic segments show operating profit growth in 2007".

INM's publishing division performed well, with revenues up by 3.3%. In the UK, operating profit increased by 8.4% to €15.5m, which the group said reflected "improved profitability in Northern Ireland and a reduction in the losses in The Independent and The Independent on Sunday". UK revenue was boosted by 18.3% to €268.1m in 2007, helped by strong advertising growth of 5.5%.

INM's shares this morning leaped by almost 6% to €1.83 in response to the results.

Coinciding with the publication of its results, the newspaper group also labelled telecoms tycoon O'Brien, who owns the second largest stake in INM after the O'Reilly family, a "dissent shareholder".

O'Brien, who has called on the Dublin-based group to offload the underperforming Independent titles, now holds 22.15%, up from the 21.17% he declared last week.

He has been a vocal opponent of INM's business strategy. Yet this week upped his stake in INM from 21.17% to 22.15% and been accused of making a series of "misleading and inaccurate attacks on the company, its board management, strategy and governance".

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