The one-off tax consolidation gain of $82.7 million was partly offset by other previously foreshadowed significant items, totaling $20.5m pre tax, including the closure costs of the Spencer Street printing operations, the ensuing industrial action at The Age Print Centre, and the editorial restructuring at Herald Publications.

Fred Hilmer, Fairfax CEO, says, “Improvement in operating performance in the second half in Australia, strong returns from Fairfax’s operations in New Zealand, and benefits obtained from the printing plants in Australia have underpinned substantial growth in earnings per share for the year and a significant rise in dividends to shareholders.

“With the investment in New Zealand, the growth in our regional and community newspapers (including the integration of Text Media), and the improved performance of Fairfax Digital, Fairfax has a different business mix than previously. The Australian metropolitan newspapers are continuing to grow but are now only 50 per cent of revenues, compared to 70 per cent a year ago. Fairfax is therefore less dependent on the advertising cycles of Sydney and Melbourne.”

Hilmer says revenues for the early part of this year across the group are running ahead of the same period last year by about five per cent, fuelled by strength in employment, retail and continuing growth in its New Zealand businesses. He expects further earnings growth in this cycle through FY2005, the scale of which will depend on the vitality of further trading activities during the year.

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