Fairfax profits fall as Domain costs increase

Domain costs are expected to increase by 13% percent over last year’s $206 million as Fairfax’s overall group profits have fallen by more than 4%, the company has stated in a trading update to the ASX this afternoon.

The market update was made ahead of the company’s lodgement of the Domain separation scheme booklet on Friday.

Domain contributed most of the company’s growth with total group revenue growing 13% and its digital operations gaining 22%.

Other parts of the business did not perform so well as Metro Media is expected to fall around 11% and  Australian Community Media falling approximately 10%.

The New Zealand operations, recently consolidated under the Stuff brand name, were down by around 7% in local currency and 10% in Australian Dollars.

Macquarie Media’s revenues have fallen around 4%, however the company claims these have only fallen 1% when the impact of disposals is disregarded.

For FY18, Domain’s costs are expected to increase approximately 13% from FY17’s $206 million (10% like for like excluding acquisitions), excluding any separation-related costs and adjustments.

The company also promised it would continue to implement cost savings measures across the Group.


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