Shares in trans-Tasman radio and newspaper group APN News & Media have slumped by more than 20 per cent in early trade after it unveiled a slide in first half profit.
The trans-Tasman group, which owns the KIIS, iHeartRadio, and Pure Gold radio networks, saw net profit slide 67 per cent to $7.5 million in the six months to June 30, from $22.6 million in the previous corresponding period.
The result was weighed down by more than $17 million in exceptional items related to the group's investments in revenue growth strategies.
Excluding the exceptional items, net profit rose three per cent to $25.1 million.
Revenues from continuing operations rose five per cent to $427.6 million.
APN's shares were 15.5 cents, or 23.5 per cent, lower at 50.5 cents at 1023 AEST.
APN said after a positive first quarter, the softer market conditions experienced during the second quarter had continued into July.
But while group revenues on a like-for-like basis were slightly below last year, trading conditions had improved in August for all APN's divisions, the company said.
Chief executive Ciaran Davis said APN's investments in revenue growth strategies had impacted on the group's first half profit, with benefits expected to flow during the final six months of the year.
A cost saving program designed to save $25 million was also underway.
"APN's 2015 first half results reflect a soft advertising market in Q2 and a company in an important transition phase," he said.
"APN continues to generate strong cash flows and we have good balance sheet flexibility to invest in further growth opportunities."
About $10 million worth of costs are being stripped out of APN's Australian Regional Media (ARM) business, which includes 12 daily and 60 community regional newspapers in Queensland and northern NSW.
The division suffered a five per cent slide in revenues to $94.5 million and earnings fell 22 per cent.
APN hopes to drive growth by expanding the digital presence of its newspapers, announcing new deals with News Corp, The Washington Post and streaming service Presto.
The deals will give ARM subscribers unlimited access to the latest local, state and international news and entertainment.
APN's Australian Radio Network lifted revenues 29 per cent to $104.6 million, aided by investments made in its Perth, Melbourne and Drive radio businesses.
Earnings were up by 26 per cent and costs by nearly a third, partly as a result of APN's acquisition of 96FM.
Elsewhere, APN's outdoor advertising business also saw revenues fall 12 per cent and its NZ publishing, radio and ecommerce businesses all recorded falls.
APN
* Net profit: down 67pct to $7.5m
* Revenue: up 5.0pct to $427.6m
* Dividend: Nil.
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