Fairfax Media posts what may be its last loss | radioinfo

Fairfax Media posts what may be its last loss

Thursday 16 August, 2018

In what may be its last results announcement before merging with Nine Network, Fairfax Media has slipped into a full year loss of $63.8 million and reported a drop in revenue to $1.684 billion.

A year ago Fairfax reported a profit of $83.9 million.

Restructuring and redundancy costs, as well as impact from its regional and New Zealand operations contributed to the loss.

Chief Executive Greg Hywood says each of the company's businesses has maintained a growth focus.

"Fairfax is in good shape – and that’s the reason Fairfax shareholders have the opportunity to benefit from a step-change in growth through the proposed combination of our company with Nine Entertainment Co,".

“We have long believed that media consolidation provided enormous potential to leverage increased scale of audiences and marketing inventory to grow our assets. Fairfax has consistently supported media deregulation because we saw the long-term benefits for shareholders."

For Fairfax highlights of the report are the underlying results of :

  •  Domain, a separate ASX-listed business in November 2017, delivered strong digital revenue growth of 20%. •
  • Australian Metro Media EBITDA was 8% higher.
  • ACM operating costs improved by 6%.
  • Stuff had 21% digital revenue growth and improved costs by 4%.
  • Stan reached 1 million+ active subscribers.
  • Macquarie Media EBITDA increased 3%.
Hywood says "Macquarie Media is strong with highprofile talent and the number-one stations in the key markets of Sydney and Melbourne."

"2GB, 3AW, 4BC and 6PR and the recently launched Macquarie Sports Radio franchise provide quality programming and content and opportunities for  cross promotion to build network audience strength."

The proposed merge with the Nine Network, announced in July, will create a $4 billion media giant.

The two companies expect the deal to be completed before December 31, subject to regulatory approval.

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