Seven Networks Ltd said it has appointed Korn Ferry to prepare an independent report on the nine external candidates for the board of West Australian Newspapers Holdings (WAN).
Chairman of Seven Network, Kerry Stokes said “Our primary objective is a strong board to lead WAN. This appointment will result in an objective review of the candidates”.
This followed today’s third quarter 2008 results released by WAN, which reported a 13% increase in normalised net profit and earnings per share compared to the previous corresponding period.
Normalised net profit from continuing operations rose to $31 million for the 3 months to 31 March 2008.
WAN undertook Herdsman press upgrade in the period, the benefit of which are now being ‘clearly reflected in both revenue gains and cost savings’.
“On the costs side, the company is seeing clear gains in faster printing speeds, consistent on-time delivery, substantially reduced personnel costs, and outstanding waste reduction,” WAN chief executive officer Ken Steinke said.
In its outlook statement, WAN said revenue, and in particular advertising segments have weakened, primarily national display and employment. However, the revenue opportunities provided by the Herdsman upgrade and the strength in Western Australian economy should allow the company to continue solid growth overall.
“The company will continue its policy of paying out 100% of after-tax earnings, which given the performance for the March quarter and that expected for the June quarter should result in the 07/08 final dividend exceeding the final dividend of 06/07,” the company said.
Shares in WAN fell 3 cents to $11.77 , while Seven ended 15 cents down at $9.53.
