Fairfax looking to News for print

Fairfax Media has seen another decline in revenue for the HY18, falling 3.9 per cent from the prior corresponding period, with profits down by 54 per cent, and print falling further, and is looking once again at sharing print facilities with arch rival News Corp.

The company confirmed it is already working alongside News, sharing trucking and printing titles in Queensland. With an excess of industry newsprint capacity, Fairfax says it is seeking efficiencies, and has appointed advisers to pursue deeper strategic opportunities with News Corp.

Greg Hywood, managing director, Fairfax says, “We have progressed our recent positive discussions with News Corp Australia to seek industry wide efficiencies in printing and distribution. We have had successful collaborations around shared trucking and printing titles for News in Queensland. Building on this collaboration we have jointly appointed advisers to pursue deeper strategic opportunities.”

The Fairfax’s half-yearly results revealed a 54 per cent drop in net profit to $38.5m, while revenue decline by 3.9 per cent over the first half to $877.1m.

Excluding significant items, Fairfax’s earnings before interest, taxes, depreciation and amortisation before significant items increased by 1.3 per cent to $146.9m, while underlying net profit fell 9.9 per cent to $76.3m.

After taking a $1bn write down of its publishing assets in 2016, the company has remained profitable since its $772m loss that same year.

Metro declined 11 per cent in costs from savings in print production, staff and technology, which more than offset the decline in revenue of 9 per cent. Publishing advertising revenue declined 15 per cent.

Hywood says, “This is a good result we are presenting to the market today. It shows the solid performances of our businesses – virtually across the board – and demonstrates the strength of the Fairfax Media portfolio. Fairfax is strongly positioned due to the success of growth and transformation initiatives we have implemented over the past five years. Domain’s digital growth is continuing; Metro publishing has delivered increased earnings; the Radio business is showing the benefits of the merger; and TV streaming service Stan is going from strength to strength.

“We are pleased with what the Group Publishing businesses are achieving, Our three publishing businesses are profitable and generating valuable cash flows. Each has benefited from an ongoing emphasis on digital publishing; a continuing focus on cost and efficiency; maximisation of print earnings; and development of new revenue opportunities. We expect greater industry cooperation will deliver significant benefits.

This News article appeared in the March 2018 issue of Australian Printer Magazine

Source: Australian Printer