Fairfax buoyed by modest ad market recovery, despite losses in metro media business
Fairfax Media has seen a rise in first half profits, with the group benefiting from cost cuts and the improving advertising market.
Net profit after tax in the six months to December 27 last year was $148.8m, compared to the $365m it lost a year earlier, due to writedowns to the value of the media group’s mastheads, including The Sydney Morning Herald and The Age, as well as costs related to redundancies.
In its metropolitan media business, which comprises Sydney and Melbourne newspapers and magazines, community publications and print and online classifieds, it saw a 27.8 per cent fall in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) to $54.3m. Total advertising revenue was also down 15 per cent.
Metropolitan and community newspaper ad volumes fell 9 per cent – excluding employment, real estate and motors, while magazine volumes were down 35 per cent. Circulation revenue remained flat.
The group’s broadcasting operations, which includes 3AW and 2UE, saw a 8.2 per cent EBITDA rise to $15.8m. Its Australian regional media business fell 12,8 per cent to $74.9m.
Meanwhile, its online business, which includes Fairfax Digital and Trade Me in New Zealand, EBITDA rose 11.3 per cent to $53m.
Brian McCarthy, Fairfax Media chief executive, said: “Trading during the important November/December period showed definite improvement against last year.
“December 2009 advertising revenues were approximately 2.5 per cent higher than December 2008, the first time in over 12 months that a previous corresponding period gain had been achieved.”
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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