Fairfax Media has logged its results for financial year 2016 with an expected net loss after tax of $893.5m and CEO Greg Hywood declaring the media outfit a ‘digital rich business’.
Fairfax recorded a two per cent decline in revenue to $1.83m and an EBITDA of $283.3m down 1.4 per cent.
The Domain segment proved to be the company’s shining star after it was declared digital and non-print contributed nearly half its EBITDA.
Hywood comments, “Today’s result is proof that the transformation of Fairfax Media over recent years has succeeded. The stable top-line revenue and EBITDA make it clear that we have reshaped this company into a high-value, broadly based, digital rich business.
“Digital and non-print earnings now constitute more than 40 per cent of Fairfax’s EBITDA. On current trends, next year this will be closer to 60 per cent, reflecting the continued growth in digital and non-print earnings.
“EBITDA of $283m was driven by Domain’s outstanding 40 per cent increase in EBITDA, offset by persistent print advertising weakness and longer term investment in new growth businesses.”
Its Australian Metro segment which includes The Sydney Morning Herald, The Age and The Australian Financial Review experienced a five per cent drop in revenue and a 45 per cent plunge in EBITDA.
Hywood says, “Overall circulation revenue was modestly lower, benefiting from strong growth in paid digital subscriptions of 17 per cent to $38m. Declines in print circulation volumes were offset by improvements in print yield including from the contribution of bundled digital subscriptions.”
The Australian Community Media (ACM) business, which includes its regional newspapers logged a poorer revenue performance with a slide of 11 per cent while EDITBA was down 10 per cent to $90m.
Reports have suggested Fairfax is considering a sell-off of ACM, rumours which Hywood did not downplay by commenting, “Difficult conditions continue in regional and agricultural markets. We are undertaking a review of ACM to develop initiatives and identify opportunities.”
The company has declared a dividend of two cents per share, 70 per cent franked, bringing its total dividends for the year to four cents per share.
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