Next to fund `Apple Daily' internally

Next Media Ltd (壹傳媒), controlled by Hong Kong media maverick Jimmy Lai (黎智英), says it has enough cash to fund a NT$5 billion (US$142 million) three-year plan to bring Hong Kong's second-largest newspaper to Taiwan.

The company hasn't yet set a start date for Apple Daily (蘋果日報) in Taiwan. Next Media lost HK$74 million in the six months to Sept. 30 mainly because of losses related to the May start-up of the Taiwan edition of its weekly Next Magazine (壹周刊).

Next Media "is expected to generate approximately HK$500 million (US$64 million) each year" to finance the Taiwan edition of Apple Daily, said company Deputy Chairman Andrew Chow.

The company's commitment marks a change for Lai, who has previously financed new publishing ventures on his own. He lost US$115 million on Admart, an unprofitable delivery-based retailer that closed in December last year after 18 months in business.

"I doubt if Next Media can fully fund the newspaper on its own," said Kelvin Cheng, an analyst with Daiwa Institute of Research.

"Jimmy may eventually have to pay out of his own pocket, or [the company] may raise money from the markets.''

Next Media fell as much as 3.8 percent to HK$1.01. The stock has dropped by 54 percent this year, against a 25 percent decline in the Hong Kong All Ordinaries Index.

Poor market conditions scuttled Next's HK$180 million share sale plan in October, which followed Next's purchase of the Hong Kong editions of Apple Daily and Next Magazine, the city's most popular weekly, and other periodicals from Lai for US$333 million.

Most feature Lai's trademark mixture of sex, scandal and gossip.

The recently acquired publications have earned a combined HK$485 million in the year through March 30, with half coming from exceptional gains. They posted HK$453 million in operating profits.

Next Media, acquired by Lai in 1999, lost HK$146 million in the year through March 30, and HK$79 million the previous year.

Next Magazine sells 146,000 copies a week in Hong Kong, which has a population of 6.8 million. Lai expects to sell 300,000 copies of Next Magazine a week over the next six months in Taiwan.

The Oriental Daily News, citing Lai, said earlier that he plans to start a Taiwan Apple Daily edition by the end of next year.