Independent Newspapers at 19c down 95% from Peak!

Independent News and media down to 19c today from a peak of nearly 4 euro in 2007.

Both Tony O Reilly and Denis O Brien are looking at massive losses.

What is the future of this company?Would love to hear pinsters views.

Maybe now it will move into the jax paper production business?

No, wait, it did that years ago.

I’ll get my coat …

The primary problem for IN&M is that they are indebted to the eyeballs. They didn’t help themselves either when they took that 31% stake in the Aussie media group at $6.20 a share. They’re now supposed to be trying to flog it for half that.

Also, the newspaper business is an industry in (slow) decline and that the recession is hitting advertising revenue.

Im sure there will be lots of articles in sir antos newspapers about how he has lost tons of money between this and WW … or maybe there wont.

Remember folks, his losses are not a million miles away from those of sean quinn.

It certainly seems both companies were far too highly indebted, so any slump in sales puts the company under enormous pressure immediately.

Still I’m sure the Sunday Indo will find someone (else) to blame.

They’re much worse. As a proportion of personal wealth, Anto has lost much more than Sean Quinn.

From Wikipedia

That doesn’t even take into consideration the losses he’s sustained at Providence Resources.

Well O’Brien has been agitating for the removal of the O’Reillys for quite a while now. However I don’t know his financial position right now. If memory serves me he also bought big in to BOI a number of years ago.It always struck me that there was something of the macho man about O’Brien and this was also having an influence on some of his investments.He is involved in trying to secure a telecoms licence in South America but I understand he has a serious rival now. Things may have moved on from there now.
Either way the newspaper industry in general is in decline and the internet is mainly responsible for that. People can get their own information now.
In our case it’s just as well, as our media are, and have been for some time, a joke. Some of the newer “journalists” can’t even spell and appear to have very little general knowledge. Some of the older guard are just redundant in their opinions, they have flip flopped that much.

He also bought a couple of percent of Aer Lingus. Doing his patriotic duty saving us from the bold MOL.

That’s right! I forgot about that! Isn’t he also paying the bulk of Trappatoni’s wages as well! A true patriot, who pays his taxes just like everyone else …Oh wait! :angry:

The CSO retail index published yesterday says that newspaper sales were down 19% yoy in November. The Indo group with all its national and regional titles must be feeling that pinch of that on top of ad revenue losses. If you look at the local papers the job/property adverts have just disappeared. Plus with the Indo titles being much dearer than the UK based competition they are probably seeing readers migrate to the likes of the Daily Mail as well.

both Sir Anto and o brien are tax exiles so i wouldnt have too much sympathy for either of them

for me o brien took the biscuit when he went on the late late saying he was happy to pay his 50million cgt on the sale of esat at the peak of the market and then got his solicitors to weasel his way out of that liability. That would pay Trapatonis wages for a few days

While i dont know about these pillars of society I remember dealing with loads of “high net worth individuals” who engaged in dodgy tax planning ( theres a very thin line between some aggressive tax planning and evasion, a a lot of it depends on the Revenue being too incompetent to do their job properly.) You see these people in the papers almost every day saying we have to tighten our belts blah blah while they exploit every loophole to the last, makes me sick. :imp:

Well they are a private company with poor management that have spent their time importing product from other sources and can’t produce or create something that is of value.

So of course, we should blame the public sector for this, reduce public sector salaries and bail out Independent News & Media.

That’s how it’s done right?

Nobody’s proposing an INM bailout any more than a WW bailout.

MOD Edit: Keep it up, Wight…

On the point of them being tax exiles,in the defence of Tony O he was CEO of a global American based company ,Heinz for years…

“peak of nearly 4 euro in 2007”

The share price was over 10 euro about 8 years ago, so the share price had already fallen by more than 50% to get to the “peak” referred to here.

There may have been a share split.

According to today’s Sunday Times INM’s ad revenue is down 30% in the last few months. They are forecasting it to be down 25% in the first half of 09 yoy and flat for the 2nd half.

Over reaction from sellers of the shares. As we know institutions head for the exit when in reality they should be buying like mad at current prices. However the 25 yr olds will wait until they are back over 3 euros before piling our pensions in.

paying the interest on the debt is plummeting probably towards a couple of %.

These shares will come back. Need to cut the divs and capex for a few years and hold nerve regarding selling assets for nothing. no connection with inm nor a shareholder

They have some €800million in debt maturing this year, €200m in May and €600m in September. They are hoping to raise €200-250million in asset disposals. Their current bonds are costing 5.25% but it is reckoned that any new bonds would command a coupon of over 10%. So even with asset disposals and cutting the dividend they will be paying the same amount of interest on anything over €400million of a bond rollover.

They’re slicing the margins retailers get on sales of the Indo and their other papers instead of passing the increase onto the consumer. They know they can’t possibly pass on another increase in price for that rag. Spar and other independent retailers will be taking action such as withdrawing selected or all editions from sale over the next week.