Publishing giant Fairfax Media back in the black

sydney — Australian publishing giant Fairfax Media on Wednesday posted a return to profit following a cost-cutting drive, although advertising revenue for its major newspapers weakened further.

Fairfax — which owns The Sydney Morning Herald, The Age and The Australian Financial Review — reported an annual net profit of Aus$83.9 million (US$65.7 million) in the year to June 30.

The turnaround followed a Aus$772.6 million loss reported over a previous 12-month period.

Although advertising revenue for Fairfax’s Australian newspapers declined 17 per cent, its lucrative property advertising Domain Group recorded a 19 percent jump in annual digital revenue.

“Today’s result shows Fairfax is in great shape,” chief executive Greg Hywood said.

“The strategy we commenced five years ago has successfully maximised cash flows of our publishing assets and with that built growth businesses in Domain and Stan (video on demand service).” Shares in Fairfax rose 1.19 per cent to Aus$1.02 in mid-day trade in Sydney.

Fairfax like other international media organisations has suffered from declining advertising revenue and circulation, and has slashed staff levels and costs.

The conglomerate detailed plans to list Domain as a separate entity while retaining up to 60 per cent of its shares, with a shareholder vote to take place in early November. —