SYDNEY: Australian media company Fairfax reported a 62.9 per cent drop in full-year profits Thursday, but shareholders welcomed the consensus-beating result amid the challenges facing news organisations in the digital age.
Net profit plunged to Aus$83.17 million (US$61.49 million) from a year ago said Fairfax, which owns newspapers, radio and digital interests across Australia. But revenue fell only 5.35 per cent to Aus$1.87 billion, beating the forecast of Aus$1.82 billion from analysts surveyed by Bloomberg News.
Underlying revenue — excluding the sale of two print plants and closed operations — rose 0.3 per cent to Aus$1.84 billion on the back of a 45 per cent increase from Domain, Fairfax’s real estate division.
“Fairfax has today reported top-line growth for continuing businesses for a full year for the first time in eight years,” chief executive Greg Hywood said in a statement. “Through organic growth initiatives and acquisitions we are moving to a position where the growth in our digital revenue offsets the decline in print.
“We are investing in our growth businesses and ventures — which include Domain, Life Media & Events, as well as subscription video-on-demand service Stan.” Investors cheered the consensus-beating results, and Fairfax shares closed 4.91 per cent higher at 86 Aus cents.
The Australian media group — which own metropolitan newspapers The Sydney Morning Herald, The Age and The Australian Financial Review — is facing similar challenges as international peers with print advertising and circulation revenues falling.
It has restructured operations to become more digital-facing and cut thousands of jobs over the past few years. Fairfax declared a final dividend of two cents for a total payout for the year of four cents.
