Fairfax NZ’s revenue falls

Sydney-based publisher Fairfax Media says its New Zealand unit’s revenue and earnings fell in the first half on the back of ongoing weakness in print advertising revenue.

In New Zealand, where Fairfax’s assets have been packaged for a merger with the operations of NZME, earnings before interest, tax, depreciation and amortisation were down 6.2 per cent at A$25.9 million versus the prior period, while revenue fell 4.1 per cent to A$159.2m.

Advertising was down 9.9 per cent in kiwi dollars terms to $107.9m, it said. Circulation revenue also fell.

“Weakness in print advertising revenue was partially offset by strong digital growth of 21 per cent and significant expansion in the contribution of events,” said Fairfax Media chief executive Greg Hywood.

“Circulation revenue declined 8 per cent with volume declines offsetting improvements in yield.”

He noted, however, cost management continued with an 8 per cent reduction in operating costs.

Total group operating ebitda was A$145m, down 9.9 per cent, while group revenue for continuing businesses fell 5.8 per cent to A$903m, the company said.

Separately, Fairfax Media said it was conducting a strategic review of the Domain Group in preparation for Domain’s potential separation into a new Fairfax-controlled ASX-listed entity.

Hywood said he expected the New Zealand Commerce Commission to make a decision by mid-March on the proposed merger of Fairfax NZ with NZME, which owns the NZ Herald.

The commission is due to make a final decision by March 15. The regulator’s draft view was that it should reject a merger, which it says would “result in an unprecedented level of media concentration for a wellestablished liberal democracy”.

Looking ahead, Fairfax Media said trading conditions remained muted.

Trading in the first two weeks of February saw revenues around 6 per cent below last year and trading in January saw revenues around 10 per cent below last year “in a slower than usual start across the media industry”, it said.

The ASX-listed Fairfax Media shares closed at A94c.