Total revenue down by 7% but profit up 300% after asset sales. Radio revenue grows by 6.8%.
Fairfax Media Limited has just announced its results for the half year ended 30 December 2012. While the top line reported numbers look good, the profit trend is down if extra-ordinary items are excluded.
Radio
“Fairfax Radio has achieved the improvement that we expected new management would deliver, achieving like-for-like advertising revenue growth of 6.8% in a metropolitan market which declined by 1.9% in the six months to December 2012,” said CEO Greg Hywood at today’s results briefing.
“The focus now is on broadening the product and audience for all news talk stations, driving greater collaboration across the radio network and increased integration with other Fairfax Media businesses.”
Underlying broadcast revenue was up by 4.6%, costs decreased by 4.4%, resulting in EBITDA of $10.2 million.
In his results presentation, Hywood particularly mentioned the good performances of 3AW and 96fm.
The company has reported NPAT of $386.3 million, after disposing of its remaining interest in Trade Me and its United States agricultural publishing business. Excluding the profit from these out of the ordinary business sales, the Company recorded a much smaller profit after tax of $83 million, compared to $135.7 million in the same period last year.
Fairfax Media reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $230.3 million, excluding significant items, down 22.2% on last year, in line with market consensus. Hywood says the company’s strategy has been to improve the balance sheet as it moves ahead with structural change in the face of changing media technology and changing media audience consumption trends.
An interim fully franked dividend of 1¢ per share will be paid on 20 March.
Across the company, digital revenues are increasing, as a result of the ongoing internal restructuring.
