Shares in APN News and Media fell hard after the media group announced a 67% fall in net profit to $7.5 million for the six months to the end of June.
The newspaper and radio company’s results fell on the cost of investments in revenue growth strategies which its says will deliver benefits in the second half.
APN also has a cost saving program to bring $25 million in benefits over the next 12 to 18 months.
The company is this month launching the first of a series of digital subscription packages at the Chronicle in Toowoomba, Queensland. Until now, access to its Australian newspaper sites has been free.
APN has 12 daily and 60 community newspapers in Queensland and northern New South Wales. The group also has the New Zealand Herald, radio stations and outdoor advertising assets in Hong Kong.
CEO Ciaran Davis says the 2015 first half results reflect a soft advertising market and a company in an important transition phase.
“APN continues to generate strong cash flows and we have good balance sheet flexibility to invest in further growth opportunities,” he says.