Financial performance analysis of Independent News and Media PLC

The coursework throws light on the performance of the media company Independent News and Media Plc. It is the leading newspaper and media company and has its main stream of work includes publishing and printing the national, metropolitan, regional and provincial newspapers in the Island of Ireland, New Zealand and South Africa. The coursework elaborates the economic value added model with respect to the company. The economic value added model includes the calculation of NOPAT and WACC which has been evaluated for the company. The calculation of NOPAT is done taking the past 5 years data. The valuation of the company is also done in order to get its share price movement. The share price movement reflects that the company has been not performing well since 2010. The share price has drastically gone down because of eh decrease in profit and revenue of the company. The coursework also elaborates the agency problem that is faced by the company and also highlights how they are mitigating it. The capital structure of the company is also described which reflects that the company finance its capital through equity and debt. The executive remuneration plan is also highlighted which reflects the different short term and long term incentives that are enjoyed by the executives. Introduction
Independent news and media plc (INM), headquartered in Dublin, Ireland, is a leading newspaper and media company whose primary line of activities includes printing and publishing national, metropolitan, regional and provincial newspapers in the Island of Ireland, New Zealand, South Africa and Australia (Yahoo finance, 2013). However, the company’s main interest lies in the island of Ireland. The company has significant shareholding in APN news and media which is an Australasian publicly listed company. INM has market-leading newspaper positions in Ireland as well as in Northern Ireland thereby establishing a very strong and rapidly growing digital presence that includes market leading digital positions in each of their main primary markets with more than 35 classified, editorial as well as transactional sites. Alongside having a shareholding in APN news and media, the company also has a shareholding in the daily free newspaper ‘Metro Herald’ as well as the national daily tabloid title ‘The Irish Daily Star’. INM is by far the biggest wholesale newspaper distributor and newspaper contract printer on the Island of Ireland. As far as its operations in Australasia are concerned, as mentioned above, INM has a 29% investment in APN News & Media Limited which is listed in the Australian Securities exchange (ASX). APN is the leading regional newspaper publisher in Australia and the largest newspaper publisher in New Zealand. The company is also the largest radio operator (50% owned that includes over 140 radio stations and also owns 50% of Australia’s largest outdoor advertising operators. APN also enjoys leading outdoor advertising position in Hong Kong. INM realizes significant value from its stake in APN news and media. In an aggregate, INM’s gross assets are worth around €322 million. The company’s aggregate revenue is €350 million and it employs close to 1000 people worldwide (Independent news and media, 2013).

Financial performance analysis of Independent News and Media PLC

Type: Coursework
Domain: Financial Performance Analysis
Words: 3250
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