Independent News & Media Investors - INM

Independent News & Media Investors - INM

Best deals to access real time data!
Level 2 Basic
Monthly Subscription
for only
Monthly Subscription
for only
UK/US Silver
Monthly Subscription
for only
VAT not included
Stock Name Stock Symbol Market Stock Type
Independent News & Media Plc INM London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 0.0919 01:00:00
Open Price Low Price High Price Close Price Previous Close
0.0919 0.0919
more quote information »
Industry Sector

Top Investor Posts

charlie11909: Business Media Friday 6 February 2015 Business Newsletter Warren Buffett's media chief: Print newspapers have strong future if industry adapts Gavin McLoughlin Published 06/02/2015 | 02:30 Share Terry Kroeger, President and CEO, Berkshire Hathaway Media, holding hurley, with (l-r) Enda Buckley, Local Ireland; Sean Mahon, President Local Ireland and Managing Director Southern Star; Eoghan O Neachtain, Eriva; Frank Mulrennan, CEO Media Group; Michael Ryan, Managing Director, INM Regionals; and Johnny O’Hanlon, Local Ireland, in Croke Park yesterday Terry Kroeger, President and CEO, Berkshire Hathaway Media, holding hurley, with (l-r) Enda Buckley, Local Ireland; Sean Mahon, President Local Ireland and Managing Director Southern Star; Eoghan O Neachtain, Eriva; Frank Mulrennan, CEO Media Group; Michael Ryan, Managing Director, INM Regionals; and Johnny O’Hanlon, Local Ireland, in Croke Park yesterday The head of one of the largest US newspaper groups "doesn't buy" the idea that print newspapers will be dead within years. Regus™ Offices to Rent Workspaces To Suit All Budgets. No Hidden Costs - Get A Quote Now. Insurance for IT Sector Single Insurer with all coverage. Tailored to IT, Technology Needs. Ads by Google Share Journalists should prioritise their customers' desires rather than a particular platform, Terry Kroeger, president and chief executive of BH Media - a subsidiary of Warren Buffett's Berkshire Hathaway group - told a symposium on the future of local newspapers in Croke Park yesterday. Berkshire Hathaway has continued to expand its investment in newspapers despite continuing negativity about print journalism's future in the digital age. "The mistake that the consultants and prognosticators make is that they argue whether it's digital first or newspaper first. It's neither. The truth is the model that's most likely to work is customer first," Mr Kroeger said. "Some of our customers prefer print, some web browsers on a PC, some iPads, some smartphones. We need to embrace all of those channels so that our customers can consumer our products in whatever format they prefer. "We need to excel at all of those channels. We need to embrace these changes and be great at distributing our information in whatever formats emerge." Mr Kroeger said that since 2008 the newspaper business has become far more difficult than 10, 20 or 30 years ago. "Back in the day we fundamentally had monopoly businesses with few alternatives for advertisers looking to reach their audience...that changed forever and the news and advertising ends of our business have never been more competitive," he said. "So why would Warren Buffett, arguably one of the smartest investors ever, make repeated investments in newspapers? The first reason is that most newspapers remain very profitable operations," Mr Kroeger added. Mr Kroeger said the biggest reason for newspapers going bust has been too much debt, typically caused either by too-elaborate plant expansions or aggressive acquisitions where high prices and bad timing placed burdens on newspaper companies. He said another reason that BH Media is investing in newspapers is that cover prices have become cheaper in the US in recent years. Irish Independent
wexboy: Company: Independent News & Media Prior Post(s): 2012 & 2013 Ticker: INM:ID Price: EUR 0.155 So, I s'pose I got it horribly wrong last year – I pegged INM as worthless! But that's because I choose to foolishly dwell in a world where equity holders in an over-leveraged company, with declining revenues, actually get wiped out (or diluted to irrelevance) in a debt restructuring... [I really should cop on - there's been plenty of counter-examples since the bloody financial crisis!] So the loss I foresaw actually occurred, except the pain was mostly taken by the creditors & pension fund instead. The only call on shareholders was a placing & open offer to raise a net EUR 40 million, and even that was primarily funded by Denis O'Brien & Dermot Desmond (via IIU). [Which leaves them firmly in control with 29.9% & 15%, respectively. Tony O'Reilly's still a presence, but his 5.0% stake's now a mere irritant. Notably, Vincent Crowley's departure was recently announced - he was the last remnant of the O'Reilly reign]. So, where does all this leave Independent News now? Well, I'm astonished to see investors now appear to love INM almost as much as they previously hated it... I guess now the debt problem's fixed, people have forgotten all about INM's other little, it's a classic old media empire, with an apparently never-ending decline in revenues!? Anyway, I really don't believe the debt problem's been fixed myself. In fact, the whole restructuring exercise puzzles me – I mean, if you're going to do something, bloody well do it right! 2013 revenue was reported at EUR 322 million (on a continuing basis), down 6.6%. Expense cuts actually delivered a stable (pre-exceptional) operating profit of EUR 33 M, so the operating margin increased slightly (into double digits, at 10.1%). But I see no end in sight for continued restructuring/exceptional expenses, and I'm still dubious of INM's cash generation, so I continue to focus on the cash flow statement instead. This confirms operating free cash flow continues to fall well short (of operating profit) at 23 M. But this figure includes INM's profitable South African unit, which was sold last August – I wouldn't be surprised by a 40%+ reduction if SA were stripped out. I suspect the underlying operating margin's probably more like 4.3%. Let's be kind & presume an average margin of 7.2% is possible, now the debt restructuring's given the company some breathing room – this deserves the same 0.6 P/S multiple as last year. Unfortunately, we still don't have adequate coverage for an expected 6.5 M interest bill for 2014 (based on the dramatic reduction in net debt to 95 M). Assuming a 7.2% average operating margin, we'd need to see a further reduction in total debt (by almost 50%, or 60 M) to limit interest expense to 15% of operating profit. [This may seem conservative, but that kind of leverage may still prove problematic for a business that remains in decline]. To this (negative) debt adjustment we should also add the remaining net pension deficit of 61 M. However, we do have an offset – INM's 18.6% stake in APN News & Media (APN:AU) – a ridiculous trophy asset that should have been sold years ago, but at least its value has recovered somewhat in the past year (to AUD 128 M). Add all this up & we have: (EUR 322 M Revenue * 0.6 P/S – 60 M Debt Adjustment – 61 M Net Pension Deficit + 192 M APN Shares * AUD 0.67 / 1.4952 EUR/AUD) / 1.4 B Shares = EUR 0.114 Surprisingly, Independent News is only slightly over-valued at this point. But the company still presents plenty of operational & financial risk, whereas any realistic bull case is pretty much limited to a potential stabilization & exploitation of a pretty mature business (at the very best). What's puzzling is both O'Brien & Desmond have an eye for value, but they're primarily growth investors – INM really doesn't seem to fit the bill for them at all... Price Target: EUR 0.114 Upside/(Downside): (26)%
caveat_emptor: INM to raise €40m by selling new shares Tom Molloy Group Business Editor – 18 November 2013 INDEPENDENT News and Media said this morning that it will raise €40m by selling new shares before Christmas to existing investors. The share placing is last piece in a complex jigsaw puzzle that slashes the publisher's debt to around €118m. Two of the publisher's biggest shareholders have already a given a commitment to buy shares, INM said. Telecoms billionaire Denis O'Brien will maintain his stake at 29.9pc when the placement ends while financier Dermot Desmond said he expects to increase his stake to 15pc from 6.4pc. "The proposed capital raise, intended to raise €40m net of expenses, represents the final stage of the restructuring," the company said. The share placement is the last step in chief executive Vincent Crowley's ambitious plan to return INM to profitability. It follows deals with the publisher's main lenders to write down debt, a reduction in future pension payments to employees and cost cutting measures. Lenders will own around 11pc of the company following the deal while a staff pension scheme will own a further 5pc. The share placement, which is a combination of firm placement and open offer, must still be approved by shareholders at a specially convened shareholder meeting. INM owns this website and a host of titles in the Republic of Ireland as well as the 'Belfast Telegraph'. Shares in INM has soared 300pc to 12 cents so far this year, making them the best performing company on the Dublin stock exchange.
caveat_emptor: Denis O'Brien banks on smarter Haiti Wednesday, 16th January 2013 12.28pm When Irish billionaire Denis O'Brien set about building a cellphone company in the western hemisphere's poorest country, there was no shortage of sceptics. Six years later O'Brien's company Digicel is the largest private investor in Haiti and has 4.8 million users, about half the population. It is a rare beacon of entrepreneurship in a country still struggling to rebuild after the 2010 earthquake. O'Brien's ambitious plans for Digicel are part of his bullish vision for Haiti which stands in sharp contrast to the usually gloomy forecasts for a nation crippled by perpetual political turmoil and natural disasters.
caveat_emptor: Can you just see the reaction when a US investor is asked to pay 1% stamp duty when buying Irish shares?
pdosullivan: Unfortunately the problem with your claim that I merely parrot what others say is that I covered Independent News & Media when I covered the sector as a sell-side analyst. Thus, I suspect that I understand the workings of the company rather better than you give me credit for. In any event, the share price performance of late has been rather in line with my own forecasts, and not at all with what you endorse (which brings us back to my opening sentence), so I think impartial followers of the stock will draw their own conclusions from that. Might I also take this opportunity to note that the obvious problems with the argument sketched out above at this time are: (i) investor concerns around South African assets given recent labour disputes (which could easily dampen the sale price of INM South Africa); and (ii) the recent collapse in INM's 30% owned Australian associate APN News & Media's share price. Added to continued challenging advertising conditions in Ireland these pose continued near-term headwinds for the INM share price outlook. And that's before we even get onto INM's bank facilities, which mature in less than 2 years. And sadly for Caveat_Emptor, no amount of ad hominem attacks will compensate for those challenges.
caveat_emptor: The INDO had this to say today... "An investor can acquire up to 29.9pc of a company quoted on the Irish stock exchange. If an investor passes this threshold, he must make an offer for the remaining shares, unless he receives a waiver from the Irish Takeover Panel."
cudman: Somebody wants 'em
lbo: Pressure mounting on media industry The media industry is facing a further contraction in advertising revenue this year. While online media has experienced double-digit growth, ad revenues are falling in all other forms of media, at an average rate of 5 per cent per annum. In the boom years, advertising investment topped €1 billion. In 2010, the overall spend on advertising was €749 million, according to one new estimate, and the total for 2011 is probably going to drop to €732 million.* At least two other regional newspapers are understood to be in acute financial difficulty, hit by a squeeze on advertising and other challenges, such as a 20 per cent rise in the cost of newsprint. All papers have instigated pay cuts, several times in most cases. The Irish Times has recently started another cost-cutting exercise, as has Independent Newspapers. This is not just an issue for print. In the radio industry, similar fears are being articulated, and there have been numerous efforts to consolidate stations that have shared ownership. While even the smallest radio stations have managed to hang on so far - though niche Dublin station Phantom FM did so only by means of taking in Communicorp as a new investor - it is feared that 2011 could be the year when the luck runs out for organisations that have been hanging on by a thread until now
mcsean2164: Independent News & Media says it has raised €29.3m from a placing of more than 50 million new shares with institutional investors at a price of 58 cent. The company will use around €29m of the money raised to pay off most of a €36m loan facility put in place as part of the group's restructuring late last year. The loan facility has an interest rate of 25% a year, and Independent says there will be savings of around €7m a year as a result of the repayment. The group cut its recourse net debt to €543m by the end of June this year, and says there will be a further significant reduction by the end of this year. The new shares will represent just under 10% of the company and are being placed at a price slightly below yesterday's close of just over 60 cent. INM shares were down slightly at 59 cent in Dublin this afternoon. 25% interest!!
ADVFN Advertorial
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211018 23:33:59