Fairfax records a $400m loss after writedowns
Fairfax has posted a $400m loss for the 2011 financial year, after writing down the value of some of its assets. However, its trading profits were in line with market expectations, with its earnings before interest, tax, depreciation and amortisation down around 5% to $607.4m.
CEO Greg Hywood said: “While we have reported an after tax loss for the year for statutory purposes, it is important to highlight this is due to substantial impairment and restructuring charges.”
In a what may have been a nod to mooted joint printing with News Limited, Hywood said: “I am confident that over the next two years we will be able to reduce costs by at least $85m.”
He also warned that lack of consumer confidence is still affecting the ad market. He said: “Consumer and advertiser sentiment has remained subdued.”
The standout performer for Fairfax was its online division, which recorded a 10.3% growth in revenue and a 6.6% profit growth. Profits in the metropolitan media division dropped by 18.7%.
The company also said that it planned to float a third of its online trading platform Trade Me on the New Zealand stock exchange.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
Linkedin
Not surprised. The sales of the Fin Review have fallen to around 70,000 a day nationwide. Its gone from a business newspaper, to a newpaper with press releases a day later. Also the other mastheads have lost their politcal balance. So people turn off and look for other sources,
User ID not verified.
Gee Ann that comment is strikingly similar to Suzanne’s comment on Crikey. Agenda?
http://www.crikey.com.au/2011/.....carve-out/
User ID not verified.
With you all the way @ Ann. I too find The Dirty Diggers publications fair and balanced.
User ID not verified.
Yeah, adopting the editorial viewpoint of the Oz is obviously the way to profit… that’s why it loses $50 million a year.
User ID not verified.
What rubbish re the AFR. It still sets the standard in financial and corporate reporting. Go back to reading new idea, ann
User ID not verified.
Ah yes, that’s right … it’s the Fairfax publications that have lost their political balance. Not like those reliable bastions of integrity in the News Ltd stable. It was just hard to notice what was really happening amid all the anti-climate change ‘news’ stories.
User ID not verified.
Sorry Mike
The Fin review sales figures are public domain. There were released 2 weeks ago, along with the other national and state papers? I read it in a newspaper not crikey.
User ID not verified.
Why is that Australian media-related discussion is so full of bile? I notice this especially when it comes to the Australian Financial Review, which has struck me since my arrival two years ago as a superior news source. It is better at its speciality than many such papers elsewhere and for the size of this market it’s quite special. (And yes, Ann, circulations would be down in this extraordinary investment climate – the other thing I noticed about the Fin is that you have to pay for it, unlike the good old FT which is free or deeply discounted almost everywhere you turn.)
User ID not verified.
Lucy,
I think when the Financial Review increased its price to $3, it crossed a physiocological barrier. You may as well read it for free with the $3 cappuccino!!
User ID not verified.
Ann I know the figures are public domain, I’m just wondering if you made the identical comments on Crikey.
User ID not verified.
Hi Mike,
Don’t use Crikey. I think you have to pay for that one, anyway.
User ID not verified.
Couldn’t help but notice the similarity between Ann and a troll.
Related? Surly not.
User ID not verified.