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

 


Fairfax Media reverses slide in NZ earnings

Fairfax Media reverses slide in NZ earnings as cost cuts offset drop in ads, circulation

By Jonathan Underhill

Aug. 14 (BusinessDesk) - Fairfax Media Group reversed a slide in earnings from its New Zealand business as cost cutting helped make up from a continued decline in advertising and circulation.

Earnings before interest, tax, depreciation and amortisation rose 3.1 percent to $80.2 million. Costs fell 7.3 percent to $318.6 million, making up for a 5.4 percent decline in revenue to $398.9 million. Advertising sales in the year fell 5.2 percent to about $269 million while circulation declined 6.6 percent to $117.9 million.

Fairfax chief executive Greg Hywood said print advertising in New Zealand isn't declining at the same pace as in Australia and benefited from a strong agricultural sector, stabilisation in property advertising and local government spending, although there was "weakness in a number of categories including retail and employment.

Fairfax's cost cutting in New Zealand has included axing workers and sharing some printing with rival APN News & Media. Fairfax, which publishes the Dominion Post, Press and Sunday Star Times newspapers and operates the Stuff website, slashed the value of its New Zealand mastheads by more than 80 percent in 2012 to recognise the decline in traditional publishing.

The Fairfax group posted a profit of A$224.4 million in its latest year, compared to loss of A$16.4 million a year-earlier, when it took impairments of A$444 million on print assets and intangibles. In the latest year, one-time items netted out as a gain of A$66.7 million. Sales fell 3 percent to A$1.97 billion.

The company is two years into a three-year restructuring programme it calls Fairfax of the Future, which is targeting annualised savings of A$311 million in 2015. Net costs to deliver the programme through 2015 are expected to be about A$290 million, including A$245 million for redundancies, capital spending of A$86 million and operational spending of $25 million.

"Today's result underlines the ability of Fairfax to deal with enormous structural changes impacting upon the industry," Hywood said. "We have stabilised earnings and completely remade a legacy-based, vertically-integrated newspaper business into a genuinely multi-platform media company."

The company will pay a final dividend of 2 Australian cents a share, bringing total payments for the year to 4 cents.

Shares of Fairfax last traded on the ASX at 88.5 Australian cents and have climbed 62 percent in the past year. The stock is rated a 'hold' based on the consensus of 12 analysts polled by Reuters, with a median price target of 91 Australian cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news