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59
APN
annual report
2011
notes to the financial statements
APN News & Media Limited and Controlled Entities
4. SEGMENT INFORMATION
(a) Description of segments
The Group has identified its operating segments based on the internal reports reviewed and used by the Board of Directors and the senior
management team in assessing performance and determining the allocation of resources. There are six reportable segments as follows:
Australian Regional Media
Newspaper and online publishing
New Zealand Media
Newspaper, magazine and online publishing
Australian Radio
Metropolitan radio networks
New Zealand Radio
Radio networks throughout New Zealand
Outdoor
Roadside billboard, transit and other outdoor advertising
Digital Ventures
Digital businesses
(b) Results by operating segment
The Directors and senior management team assess the performance of the operating segments based on a measure of EBIT which excludes
the effects of exceptional items such as restructuring costs and impairment of intangible assets.
The segment information provided to the Directors and senior management team for the year ended 31 December 2011 is as follows:
2011
Australian
Regional
Media
$’000
NZ
Media
$’000
Australian
Radio
$’000
NZ
Radio
$’000
Outdoor
$’000
Digital
Ventures
$’000
Unallocated
$’000
Total
$’000
Revenue from external customers
272,807 303,320 133,212
86,712 263,740 12,603
–
1,072,394
Segment result
43,642
51,765 44,906
12,503 38,006
(4,925)
(14,499)
171,398
Share of profits of associates
–
–
–
–
6,143
(336)
–
5,807
Segment assets
238,580 697,166 363,824 197,052 379,638
8,934 112,782
1,997,976
Segment liabilities
35,340 168,347
44,789 20,420 133,454 13,029 469,796
885,175
Reconciliation of segment result to operating profit before income tax
Segment result
171,398
Net finance costs
(55,944)
Gains on disposal of properties and businesses
788
Gains on insurance claims
4,377
Fair value adjustment on acquisition of associate
8,307
Gains on equity instruments
3,652
Foreign exchange gains
3,925
Redundancies and associated costs
(17,332)
Asset write downs and business closures
(18,298)
Impairment of intangible assets (note 12)
(159,495)
Loss before tax from continuing operations
(58,622)
Gains on insurance claims relates to claims made against damage to property, plant and equipment as a result of the Christchurch
earthquakes during 2011. Total proceeds received were $4,792,000.
The fair value adjustment on acquisition of associate is the uplift in fair value that arose from the acquisition in February 2011 of the further
25% of Idea HQ Limited.
Redundancies and associated costs relate to the restructuring program put in place during the year with approximately 300 staff being
made redundant in the Group’s publishing divisions, delivering $25 million in annualised costs savings
Asset write downs and business closures relate mainly to the closure of certain loss making magazines in the Australian Regional Media
division, the closure of the Bundaberg and Mackay printing facilities and the move to a digital first approach in the Tweed and Coffs
Coast markets.