Herald's owner says Christchurch quake cost it $5.46m

APN News and Media Ltd (APN) says the disastrous Christchurch aftershock on February 22 -- which police say killed about 182 people -- cost it $A4 million ($NZ5.46m) in first-quarter earnings, including $A1 million from the weaker exchange rate for the NZ dollar.

"It has become clear that the Christchurch earthquake on February 22 has impacted an already subdued New Zealand economy, particularly rural and regional New Zealand," said the Australian media company, which owns the biggest newspaper on this side of the Tasman, the Auckland-based New Zealand Herald.

"Coupled with a lower exchange rate, this has resulted in APN's New Zealand Q1 earning before interest and tax (EBIT) being down $A4m year on year, including a $A1m impact from the weaker exchange rate," the company said in an update for shareholders. "It is extraordinary to experience two major natural disasters in two distinct geographies in one quarter.

"The impact of these two severe natural disasters has meant that group EBIT in Q1 is estimated to be down $A9m, compared to 2010."

In relation to its New Zealand media -- which included a series of provincial daily newspapers -- a range of initiatives were being actively pursued so as to limit the impacts of the weaker New Zealand economy.

"Despite its current weakness, the New Zealand economy is forecast to return to growth in 2012." the company said.

On a brighter note, it said: "In stark contrast, the performances of APN's cross-Tasman Outdoor and Radio operations continue to show strong growth and to date are ahead of both budget and the prior year."

When APN released its 2010 full year result earlier this year, the company noted that following the devastating Queensland floods in January, its Australian Regional Media (ARM) division had recorded a year-on-year $A3m drop in EBIT in January.

This impact had moderated through February and March to a cumulative shortfall of $A6m in EBIT terms for the quarter, and the shortfalls were expected to moderate further through the three months to the end of June.

The company said its "digital initiatives and investments" were building meaningful new revenue streams. Its GrabOne digital coupon business remained the clear market leader in New Zealand, and was is rolling out to new Australian markets and is building ahead of expectation. "APN would continue to take all opportunities to manage costs and remained committed to growing its strategic programme of digital investment.

It will update the New Zealand and Queensland revenue losses at an annual meeting on May 3.

APN's main NZ rival, Fairfax Media, used its first-half profit result on February 24 as a chance to pay tribute to the staff of that company's Christchurch paper, The Press.

Fairfax chief executive Greg Hywood used the profit announcement to speak of the death of one staff member died and injuries to three others and praised other staff for continuing to publish.

Fairfax's first-half profit result rose 15 percent to $165.4 million, but Mr Hywood refused to speculate on whether the earthquake would harm future profits: "It is not even a question that we have asked at this stage," he said. "Our priority is our people".