* FY op pft pre exceptionals, including APN, 221.8 million euros
* Broadly in line with guidance of 220-225 million euros
* Cost-cutting to help profits
* No material uplift to advertising this year
* Shares rise 1.7 percent
(Adds CEO comments, analyst, shares, more detail)
By Carmel Crimmins
DUBLIN, March 22 (Reuters) - Publishing group Independent News & Media (INM) is relying on cost-cutting to boost profits this year as market conditions remain tough in Ireland and South Africa.
The Dublin-based group has radically restructured its business, selling its flagship UK title the Independent, as well as media interests in India, shutting loss-making newspapers in Ireland and swapping debt for equity to secure its future.
"Most of the big, big work has been done and we now have a business that is positioned for the advertising recovery when it comes," Chief Executive Gavin O'Reilly told reporters.
O'Reilly, whose father Anthony owns 12 percent of the group, said the company was happy with broker forecasts for reported operating profit this year before exceptionals in a range of over 85 million euros to over 90 million euros.
INM reported a 9 percent increase in 2010 operating profit before exceptionals, excluding disposals and the deconsolidation of Australia's APN News & Media, to 82.6 million euros.
Including operating profit at APN, in which INM holds a 32 percent stake, INM's operating profit before exceptionals was 221.8 million euros, broadly in line with previous guidance of a range of 220 million euros to 225 million.
O'Reilly said he expected advertising revenues, which account for around 40 percent of group revenues, to be flat or only marginally higher on a full-year basis as Ireland remains stuck in the economic doldrums due to a prolonged banking crisis.
"We'd be foolhardy at this point to be forecasting any sort of bounce or recovery in Ireland, It will come some time but I can't see it coming in 2011," he said.
So far this year, revenue trends have been broadly in line with 2010 with advertising revenue down 7 percent in constant currency terms and circulation revenue down 1 percent on the same basis.
Year-to-date underlying group costs were down two percent and management will keep a tight lid on expenses throughout 2011.
INM's net debt stood at 474 million euros at the end of last year and O'Reilly said he expected to pay down around 50 million euros in debt this year.
Shares in the group rose 1.69 percent to 60 euro cents in early trade, outperforming the general index, which was 0.85 percent higher.
INM's stock has risen nearly 5 percent over the past 12 months, outperforming an 8 percent drop in the main index in the same period but well off the peak of over 22 euros hit in 2000. (Editing by David Holmes and Hans Peters)