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: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news