Australasian media group APN News & Media has reported a loss after writing down the value of its metropolitan newspapers in New Zealand.
The owner of the New Zealand Herald and the Listener lost $A98 million, after taking a non-cash impairment charge of $156 million.
Despite the writedown, APN chief executive Brett Chenoweth says he's confident about the prospects for its New Zealand print and digital media operations.
Mr Chenoweth says the writedown is an accounting treatment that brings the value in line with international benchmarks and it doesn't say anything about the firm's prospects.
He says the advertising market, traditionally strong in New Zealand, has been affected in the first half by a weak economy. The Christchurch earthquake hasn't helped consumer confidence.
However Mr Chenoweth says there is confidence in the long term prospects of the New Zealand economy with recent GDP indicators showing things are improving, even though it's yet to flow through to consumer numbers.
He says APN is experiencing very strong growth in digital media, which includes a 75% stake in the daily discount website, Grabone.
It has also just purchased the virtual sports tipping website, Jimungo, from the digital marketing company, Affinity ID. Mr Chenoweth won't divulge the purchase price, but says it's a relatively modest amount.
Shares in APN News and Media fell 8 cents to $1.05 on Thursday.
