IPC Media, the magazines giant behind Marie Claire, NME and Country Life, today showed why its US owner Time Warner has been keen to hang onto it as the British company paid a £51.5 million dividend.
The huge payout was revealed in annual accounts for IPC, which is the UK’s biggest magazines publisher with 65 print titles and websites. A year earlier, the group paid no dividend to its parent company.
IPC’s finances look to be in better shape after it disposed of around 20 weaker and more specialist titles, included lads mag Loaded, in 2010.
Pre-tax profits jumped to £45.5 million in 2011 against £36.9 million a year earlier.
Turnover from continuing operations dipped 1.8% to £331.2 million as print continues to feel the pressure with the rise of the internet and a tough economy.
Revenues were down 7% compared with 2010 when the former titles are also included.
IPC, which is based on the South Bank and run by chief executive Sylvia Auton, cut more than 180 jobs, reducing total staff to 1755. The unnamed highest-paid director earned £820,000, up from £581,000.
There has been on-off speculation for years that Time Warner, which owns TV and movie interests including CNN, HBO and Warner Bros, might sell off IPC and its US print division Time Inc.
Some analysts have suggested that print is not a core asset and there is little synergy between IPC and Time Inc, which runs titles such as People and Sports Illustrated.
However, Evelyn Webster, a senior Time executive and former IPC chief executive, told Media Week this week: “No, IPC is not being sold. IPC is a core part of Time Inc’s business.”
