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

 


Fairfax NZ first-half earnings hold up even as revenue slips

Fairfax NZ first-half earnings hold up even as revenue slips

By Paul McBeth

Feb. 20 (BusinessDesk) - Fairfax Media Group’s New Zealand unit, which includes the Dominion Post, Press and Sunday Star Times newspapers, kept its first-half earnings reasonably flat as recent cost-cutting measures offset weaker circulation revenues.

New Zealand earnings before interest, tax, depreciation and amortisation slipped 0.8 percent to $42.3 million in the six months ended Dec. 29 from the same period a year earlier, the Sydney-based parent company said in a statement. Revenue shrank 7.7 percent to $206.9 million, with a 5.9 percent decline in advertising sales to $140.5 million and an 8.7 percent drop in circulation revenue to $59.2 million.

In Australian dollar terms, the New Zealand unit lifted revenue 4.6 percent to A$182.2 million and EBITDA 10 percent to A$37.3 million.

“In the New Zealand business, weak retail sales have affected the performance of circulation,” the company said in its report. “The advertising market remained stable, (local) government elections and the auto and property markets boosted the results against softer categories. Savings in staff expenses offset the decline in revenue.”

The New Zealand unit was the middle of the pack for the wider group, whose Australian metropolitan segment boosted earnings 52 percent to A$81.5 million on a 9.8 percent fall in sales to A$428.6 million. The Australian community media unit’s earnings dropped 22 percent to A$82.5 million on an 18 percent slide in revenue to A$305.5 million, and the radio segment posted a 9.9 percent decline in EBITDA to A$9.2 million on a 1.1 percent decrease in sales to A$54.5 million.

Stripping out one-off items including assets sales, Fairfax’s underlying profit from continuing operations climbed 49 percent to A$86.4 million. Net profit dropped to A$193.8 million, or 8.2 cents per share, in six months ended Dec. 29, from A$386.3 million, or 16.4 cents, a year earlier. The 2013 result was bolstered by one-off proceeds from the sale of Fairfax’s stake in New Zealand online auction site Trade Me.

“We have shown a determination to transform the business through cost reductions and driving new revenue streams,” chief executive Greg Hywood said. “We have made decisions to balance revenue and cost with a focus on growing profits on a sustainable basis.”

Revenue was down 3 percent in the first five weeks of the second half from a year earlier, a slower decline than the 5.5 percent drop in the previous year.

Fairfax finished the year with net cash of A$80 million from net debt of A$154 million a year earlier, and boosted operational cash flow to A$90.6 million from A$69.4 million.

The ASX-listed shares last traded at 71.5 Australian cents, and have gained 12 percent this year.

The board declared an interim fully-franked dividend of 2 Australian cents per share, payable on March 19 with a record date of March 5.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news