Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fairfax Media slashes New Zealand mastheads value by 80%

Fairfax Media slashes New Zealand mastheads value by 80%

By Paul McBeth

Dec. 28 (BusinessDesk) - Fairfax Media, which publishes the Dominion Post, Press and Sunday Star Times newspapers, slashed the value of its New Zealand mastheads by more than 80 percent in a group-wide writedown of its traditional publishing assets.

The New Zealand holding company, Fairfax New Zealand Holdings, valued its local newspaper titles at $175.2 million as at June 30, down from $950.1 million a year earlier, according to financial statements lodged with Companies Office. Value is allocated to the mastheads based on how much a company expects to recover from the asset, and is reviewed annually.

The bulk of the remaining value in its titles is in the North Island publications such as the DomPost and Waikato Times, valued at $112.5 million, compared to $564.1 million in 2011. The South Island publications, including the Press and the Nelson Mail, were written down to $54.9 million as at June 30 from $343.2 million, while national publications such as the Sunday Star Times and Cuisine magazine, were valued at $7.7 million from $42.8 million.

The wider Fairfax group took a A$2.8 billion impairment on its goodwill and mastheads in the 2012 financial year as it reassessed the value of its traditional media assets and attempts to reform itself into a nimble, digital-based company.

Part of that strategy has been for Fairfax to sell out of online auction site Trade Me in three tranches in the past year, generating some $1.72 billion in cash which it's used to pay down debt and buy technology investment firm Netus. Trade Me's goodwill was valued at $729.7 million as at June 30.

Fairfax NZ Holdings made a loss of $709.1 million in the year ended June 30, due to the $776.4 million impairment charge it took in writing down its assets. That implies its underlying profit was $67.3 million. Revenue edged up 0.9 percent to $611.2 million, of which $443.2 million came from the local media assets and $146.2 million from Trade Me.

In August, the Australian parent said its New Zealand media assets reported a 6.8 percent fall in advertising revenue to $300.8 million and a 5.6 percent drop in circulation sales to $129.1 million. Earnings before interest, tax, depreciation and amortisation dropped 9.9 percent to $78.1 million.

The local media unit paid a dividend of $11.1 million in the 2012 year, down from $48.1 million a year earlier. It made a further dividend payment of $15.7 million after the June 30 balance date.

Fairfax New Zealand paid $87.9 million in finance costs in the 2012 year compared to $133.4 million in 2011, as related party debt more than halved to $401 million.

The ASX-listed Fairfax shares rose 1 percent to 48.5 Australian cents today, having shed 35 percent this year. The stock is rated an average 'hold' based on 13 analyst recommendations compiled by Reuters, with a median target price of 50 Australian cents.

The media group's market capitalisation value of A$1.13 billion is almost half the enterprise value of $2.23 billion in the Reuters consensus.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news