APN set to buy out ARN, announces profit despite business write-downs

APN News and Media has confirmed it is set to buy out US partner Clear Channel from its 50 per cent share in the Australian Radio Network for $246.5m, giving it full ownership of the network.

The news comes as the media firm, which owns a number of regional newspapers and an interest in outdoor company Adshel moved back into the black with a net profit of $2.6m after writing down the value of some of its assets, while the company also announced a $132m capital raising to finance the radio deal, in its full year results to December 31.

Before the write downs, which included cutting the value of  APN Outdoor, which it sold its remaining stake in in January, by $23.6m, and BrandsExclusive which it divested last week for $2m by $24.5m, profits stood at $59.5m, the company’s best result since 2007.

CEO Michael Miller said: “This was a very satisfying result, which saw APN return to growth and has positioned the company for further improvement. The acquisition of our Australian and New Zealand radio businesses is part of our efforts to streamline APN’s operating structure. We have reduced the number of part-owned businesses from seven to two.