Fairfax warns of continuing deterioration
Farifax Media’s trading situation has got worse and management have frozen their own pay, the company has told the Australian Stock Exchange. CEO Brian McCarthy said in a statement:
“In the weeks since Easter, a clearer picture has emerged in relation to trading conditions in advertising markets in both Australia and New Zealand. It is apparent the markets have continued to deteriorate and although the rate of deterioration has abated, advertising levels are not expected to show any marked improvement at least for the rest of this financial year.”
He predicted that the company would report a $600m profit this year – down more than 26%.
“Demonstrating the benefits of the Company’s diversification programme, a more resilient performance from regional publishing, broadcasting and digital businesses has reduced the impact of more significant advertising declines in the metropolitan publishing business,” added McCarthy. “Notwithstanding the advertising revenue declines, market shares have improved in key advertising categories. Also, circulation revenues have improved over the prior corresponding periods.
“Consistent with these reductions the CEO, Directors and generally direct reports to the CEO have accepted fee and salary freezes.”
The timing of the announcement – shortly before the Budget – has raised eyebrows. Crikey’s Glen Dyer pointed out: “While the majority of the nation’s serious media was detained studying the federal budget, Fairfax slipped out an update to the market .”
And it also coincides with new data from Goldman Sachs JB Were suggesting that Fairfax’s classifieds have virtually halved.
Other analysis:
Stephen Bartholomeusz in Business Spectator: “The group, though, still appears to believe it is experiencing something cyclical rather than the structural implosions being experienced by newspapers elsewhere.”
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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Fairfax publishing is just another stick of Kindle-ing for the fire.
Gosh darned print is living in the past I tells ya. Woman’s Day thinks its last month.
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Excellent, lets get rid of the newspapers, then we can get started on the shock-jocks, then perhaps people might start thinking for themselves…….
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Laughable – perhaps instead of freezing management’s pay they should have offered the old ‘pink slips’ that were so freely handed out in the past. Time to get people onboard who know what they’re actually doing…..the left hand is getting extremely lonely.
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