Fairfax Media revenue has managed to climb 1.6 per cent despite the tide of falling print income, and looks to real estate arm Domain as its crown jewel for profit.
The media conglomerate logged a steady increase in revenue for the 2016 FY to $958m, up from the last financial period’s $932m. Net profit also rose 4.2 per cent to $27.4m in the six months through to December 31, tracking up from $26.3m in the previous corresponding period.
Chief executive Greg Hywood says the company’s focus on driving digital is enough to compensate for falling print revenue and commends its financial performance despite the struggling sector.
“Growth in digital subscriptions of 14.3 per cent largely offset modest declines in print circulation,” says Hywood.
“This has been a solid performance in the context of continued week print trends.”
Fairfax also recorded ‘strong organic growth’ of 38 per cent from its real estate arm Domain which generated the bulk of revenue for the financial year and also works to offset the decline in circulation in Australian metropolitan publications.
Hywood blamed ‘ongoing structural issues’ to the dwindling circulation but says the $61m from the sale of Tullamarine and Chullora print sites boosted this period’s earnings.
[Related: No plans to shut Fairfax print]
Fairfax says digital subscriptions have jumped by 14 per cent for this fiscal period, and print advertising revenue fell by the same amount. Hywood remains confident this is a peak financial point for the group even in the face of print slumps
“Our net worth has never been stronger and audiences never been larger,” he says.
Chief financial officer David Housego also attested Fairfax’s capacity of recovering print losses and confirmed price increases for real estate listings in April this year.
“We are responding to weak print revenue with an ongoing transformation progress, and the industry remains robust,” says Housego.
“There will also be 20 per cent price increases in April for Domain users.”
Fairfax digital and print audience in Australia jumped to 11 million, whilst NZ readers peaked at 3 million.
The publishing outfit also expects to pay an interim dividend 2 cents a share, partly franked.
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