The earnings upgrade comes only two months after Hilmer predicted earnings of $170m at the company’s annual general meeting.

Fairfax purchased the New Zealand business in June for $1bn, and it was predicted at the time that the New Zealand branch would report annual earnings, before interest, tax, depreciation and amortisation, of $NZ130m.

That forecast has now been upgraded to $NZ140m ($122m), assuming current revenue trends continue.

Hilmer says, “After a flat July and August, trading in Australia since September has continued to grow, as previously foreshadowed, at about four per cent ahead of last year”.

Revenue at Fairfax New Zealand has grown seven per cent above the previous year with three per cent growth in advertising volumes and four per cent from yield increases.

Plans are also in the works for Fairfax New Zealand to spend $2m to upgrade its printing plants and is also expected to upgrade its editorial systems over the next three years to the tune of $7m.

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