Fairfax Media reports profit growth in New Zealand

Thursday 24th February 2011

Fairfax Media, the Australian-based publisher of 100 newspapers and magazines and 19 websites in New Zealand, has reported double digit profit growth in its New Zealand Media businesses even though the economy has been slow to recover.

The company's New Zealand Media business has reported earnings before interest and tax of NZ$46.1 million in the six months to December 31, up 10.8% on the NZ$41.6 million last year. Earnings before interest, tax, depreciation and amortisation rose 10.4% to NZ452.1 million.

The online auction business, TradeMe, increased revenue by 11.1% and earnings before interest, tax, depreciation and amortisation by 8.3% to NZ$47.7 million. The business was started by New Zealand businessman Sam Morgan who is now a non-executive director on the Fairfax board.

The company said it is investing in product development at TradeMe and the site is experiencing growth in employment listings.

The New Zealand printing businesses is not separated out from the Australian printing business in the result but the company said the Christchurch Press Centre withstood the impact of the magnitude 6.3 earthquake on Tuesday. The Christchurch Press business celebrates its 150th anniversary in May.

Commenting on the New Zealand Media business, the company said advertising revenue rose 2.9% to NZ$172.7 million, while circulation revenue fell 2.3% to NZ$69 million. Total revenue from the New Zealand Media business was NZ$246.4 million, up 1.2% on last year, while costs fell 1% to NZ$193.7 million.

The company said the introduction of a higher goods and services tax and other tax changes affected property and consumer spending. Employment conditions in metropolitan markets were tough but there were some gains in regional markets.

Revenue from the online and mobile New Zealand Media business grew 40% to NZ$4.3 million.

"New Zealand Media continues to perform despite a weaker economy," the company said.

NZPA

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