Fairfax Media NZ reports lower earnings

NZPA

Friday 26th August 2011

Fairfax Media's New Zealand Media business, comprising 97 newspapers and 19 websites, has reported lower revenue and lower earnings but the declines are not as pronounced in local currency terms.

The advertising revenue of the New Zealand Media business fell 5.7 percent to $A247.9 million in the year to June from a year ago, according to the result published by the Australian parent. Circulation revenue fell 6.6 percent to $A105 million. Total revenue fell 5.7 percent to $A361.4 million.

Earnings before interest, tax, depreciation and amortisation fell 11.1 percent to $A67.6m and earnings before interest and tax fell 12 percent yo $A58.5m.

The company said that in local currency terms the New Zealand publishing business recorded a 2 percent decline in revenue and an 8 percent decline in earnings. TVNZ today reported a 6.5 percent rise in advertising revenue in local currency terms and nearly tripled its dividend to government.

Fairfax's New Zealand Media business increased revenue from online and mobile platforms by 41 percent to $NZ10m.

The company said it has launched a programme to reduced costs in its entire business in Australia and New Zealand by $A85m. Rationalisation of its printing business may deliver up to $A30m of this. The company was also planning to rationalise distribution.

The company employs 2117 full-time and 378 part-time and casual employees in New Zealand, according to its accounts. There was a $A77.3m writedown of the value of mastheads, customer relationships and goodwill for the New Zealand Media business.

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