Newspaper giant Fairfax Media has recorded ‘solid results’ for the half year which it says was underpinned by a structural shift from print to digital, driven by consumer demand. Revenue went up 1.6 per cent to $958m and its EBITDA recorded a 15.5 per cent boost to $98.6m. Fairfax CEO Greg Hywood says he attributes 50 per cent of Fairfax’s growth to digital publishing which offset a slump in print revenue. Trading in the first seven weeks of FY16’s second half saw revenues one to two per cent below last year, which Fairfax considered a “solid performance in the context of continued weak print trends.”
Half yearly results: Fairfax has begun a structural shift from print to digital
Commenting on the results, Hywood says, “Our net worth has never been stronger, audiences have never been larger,” adding, “But publishing has declined reflecting structural changes.” Fairfax’s regional print circulation revenue dropped by 7.8 per cent to $46m, while in metro media, it dipped only a slight 1.3 per cent to $113.8m. Regional print advertising revenue recorded a 12.1 per cent drop, attributed to declining supermarket-related print retail advertising. Metro media also faced weak print advertising which was offset by a merger with Metro Media Publishing in January 2015, this saw its print advertising revenue grow 15.6 per cent. Hywood says the results shows a clear shift from print to digital, “We continue to adapt our business model to this reality, which involves an intense focus on cost reduction and the creation of new revenue opportunities. “This will inevitably mean an even stronger emphasis on digital publishing. We are ready to meet this significant opportunity as consumer preferences demand.” Fairfax Media’s real-estate website Domain was the standout performer of the half-year results, managing to increase its digital advertising revenue by 37 per cent. Going forward, Fairfax says it will continue to focus on Domain’s strong growth, as well as drive emerging businesses and roll out its cost reduction programs.
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