Fairfax Hit With $63.8 Million Full-Year Loss Ahead Of Nine Takeover

Fairfax Hit With $63.8 Million Full-Year Loss Ahead Of Nine Takeover
SHARE
THIS



Nine may be having second thoughts on making a deal with Fairfax, after the publisher swung back into negative territory in the last financial year.

Fairfax posted a net loss of $63.8 million in the 12 months to 30 June 2018, compared to a profit of $83.9 million in FY17.

The company’s revenue fell 3.1 per cent to $1.7 billion in FY18, while its expenses before interest, taxes, depreciation and amortisation rose 1.2 per cent to $274.2 million.

Fairfax’s metro media division – which includes The Sydney Morning Herald, The Age and The Australian Financial Review – suffered a 6.1 per cent decline in revenue to $490.2 million during the 12-month period.

The division’s advertising revenue was down 9.6 per cent to $203.9 million, and circulation revenue was down three per cent to $220.1 million.

Fairfax’s community media division experienced an 8.8 per cent drop in revenue to $351.4 million, with ad revenue down 11 per cent to $211.3 million, and circulation revenue down 10.6 per cent to $60.1 million.

On a positive note, Fairfax’s separately listed real estate business, Domain, posted 11.5 per cent revenue growth to $357.3 million in FY18.

Domain’s digital revenue jumped 20.2 per cent to $278.9 million, but its print revenue fell 12.6 per cent to $77.1 million.

The publisher’s streaming joint venture with Nine is also kicking goals, with Stan achieving 72 per cent year-on-year subscription growth. The platform now boasts more than 1.1 million subscribers.

And let’s not forget the strong full-year results for Macquarie Media, of which Fairfax is the majority shareholder.

What is interesting to note is the tone change of Fairfax CEO Greg Hywood in his results commentary. Last year, he said the publisher was in “great shape”, but this year he’s gently lowered his praise.

“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.,” he said.

“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.

“This is an exciting new phase in our development. It puts the important work we do through our journalism on an even stronger and more sustainable footing for the future.”

Please login with linkedin to comment

Fairfax Fairfax Media

Latest News

ESPN Secures Landmark Deal With NBL
  • Media

ESPN Secures Landmark Deal With NBL

ESPN and the National Basketball League have extended their broadcast partnership for a further three seasons as part of an expanded television rights package. ESPN and the National Basketball League announce a new expanded agreement that will run for three seasons, until the end of the 2023/24 NBL season. The landmark broadcast deal comes with […]

Workit Spaces Launches Aussie First ‘Beyond The Store’ Web Series
  • Marketing

Workit Spaces Launches Aussie First ‘Beyond The Store’ Web Series

Sydney-based co-working startup, Workit Spaces, announced today the launch of ‘Beyond The Store’, a six-part web series to uncover the smarts and passion behind successful Australian eCommerce businesses. Workit Spaces has gone where no other coworking hub has gone before, by investing over $100,000 to tell the stories of six Australian eCommerce businesses and how […]

Semi Permanent Sydney Announces New Dates For 2021 Festival
  • Marketing

Semi Permanent Sydney Announces New Dates For 2021 Festival

In light of the prolonged lockdown occurring throughout New South Wales, Semi Permanent Sydney has announced new dates for this year’s festival. It will now take place between 17-19 November 2021 at Carriageworks. “Our mission, always, is to craft the best and most valuable experience for both our speakers and audience, and to ensure the […]

Acast Adds New Brand Suitability Controls For Advertisers Via Comscore
  • Advertising
  • Media

Acast Adds New Brand Suitability Controls For Advertisers Via Comscore

Acast, the independent power source of podcasting has teamed up with Comscore to provide brand suitability controls for brands advertising through the Acast Marketplace. This new innovation is part of a global partnership with Comscore, and will be available to all advertisers working with Acast Australia and New Zealand. The brand suitability solutions offered by […]

Hootsuite Appoints Maggie Lower As Chief Marketing Officer
  • Marketing
  • Media

Hootsuite Appoints Maggie Lower As Chief Marketing Officer

Social media management solutions company Hootsuite, has announced that Maggie Lower has joined the company as chief marketing officer. Lower will own the brand’s overall global strategy, demand generation, communications, and events. Prior to joining Hootsuite, Lower was the global chief marketing officer at Cision, the first chief marketing officer at TrueBlue, and has held […]

Trade Indy Opens Sydney Office With Appointment Of NSW Commercial Director Ben Mulcahy
  • Marketing

Trade Indy Opens Sydney Office With Appointment Of NSW Commercial Director Ben Mulcahy

Headquartered in Melbourne, Trade Indy is expanding off the back of strong client retention and consistent growth through existing and new business. Founded in Melbourne in 2014, the team have since expanded the business through team members in Singapore, Indonesia, Tasmania and Queensland, and are pleased to announce the full-time employment of NSW commercial director […]