Fairfax revenue for the half year was down by 4.7 per cent to $913m, with the company citing a 16 per cent drop in print advertising as a primary cause for the downturn.
Profit for the period trebled form last year to $83.7m from $27.4m. The underlying revenue of $902.9m is down 5.8 per cent. The EBITDA of $145.1m is down 9.9 per cent, while the EBIT of $126.8 up 0.6 per cent and net profit after tax of $84.7m up 6.1 per cent.
Fairfax shares are currently in a trading halt, with industry rumours suggesting the successful Domain business is separated out for a possible ASX listing, and that the newspaper business is potentially being sold to Seven West Media,. Owner of Channel 7.
Managing director Greg Hywood says its 16 per cent decline for half year advertising is a result from weakness in retail and motoring categories.
Fairfax advertising revenue has dropped 16 per cent for its half year results, but overall circulation revenue was up by 1 per cent, while digital metro subscription was up 22 per cent.
[Related: Fairfax slashes $1bn from publishing value]
Chief executive and managing director Greg Hywood says in the Australian metro segment – including Sydney Morning Herald, The Age, The Australian Financial Review, digital ventures and life and event businesses – revenue declined 8 per cent and EBITDA was down 12 per cent.
“Metro publishing advertising revenue declined 16 per cent, impacted by weakness in retail and motoring categories. Overall circulation revenue increased 1 per cent, benefiting from the strong growth in paid digital subscriptions. Declines in print circulation volumes were partially offset by cover price increases.
“Metro digital subscriber base is now 226,000 across the SMH, The Age and The Australian Financial Review. All three titles delivered year-on-year growth, particularly in the Financial Review. This involves an even greater primacy of our digital publishing focus, delivering unrivalled news and information products to our customers, and sustaining a commercially successful print position,” he says.
“Group operating EBITDA of $145m was achieved from revenue of $903m. Our cost reduction programs underpinned a 5 per cent decline in operating expenses, notwithstanding continued investment in our growth businesses.
“Our three publishing businesses maintained an intense focus on cost reduction, a stronger emphasis on digital publishing and made progress in building new revenue opportunities.
“We are pleased with the continued profitability of our publishing businesses in the face of the largest structural change in the industry’s history. This is a remarkable performance which few publishers globally have matched.”
Fairfax appointed Chris Janz as managing director of Australian metro publishing.
Hywood says Fairfax are conducting a strategic review of Domain Group in preparation for Domain’s potential separation into a new Fairfax controlled ASX-listed entity.
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