The results for the company, which is 25% owned by Irish media magnate Sir Anthony O'Reilly, came in well below analyst expectations of £68m.
In the UK, overall profits grew by 40.7% to £10.6m and revenues increased by 20.9% to £154.6m. The Northern Ireland division, in particular, enjoyed an excellent year with The Belfast Telegraph and Sunday Life recording increased circulations.
In Ireland, turnover was up 10.4%, delivering a 10.9% increase in operating profits.
Turnover was unchanged at £800m before exceptionals and amortisation. The company said the dramatic fall in profits was largely to do with £55.2m exceptional charges relating to start-up costs for new media and cable investments.
The group, which also owns the Independent on Sunday in the UK, as well as the Irish Independent and papers in Australia and New Zealand, said circulation revenue was up across all divisions.
Advertising has yet to regain last year's buoyant first-half levels, but it is, the company said, showing less volatility.
Independent News was also hit by the strategic acquisition of the Belfast Telegraph Group, the investment in the new Citywest printing facility in Dublin and the accelerated amortisation of banking costs as a result of restructuring in Australasia.
Australia's APN News & Media reported a net profit of A$48.2m (£17.8m) for the year, down 5% on 2000. Total revenue for the group was A$598.7m, down 3% compared with the previous year.
Despite the global downturn, operating profits in New Zealand grew by a notable 11.3% over 2000.
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