Fairfax group revenues rise following acquisitions but publishing slips 7 per cent
A slide from this morning’s presentation
Fairfax has reported a group revenue increase after acquiring the Macquarie Radio Network and Metro Media Publishing, but publishing revenues have continued to decline.
In a trading update lodged this morning with the Australian Securities Exchange (ASX: FXJ) the media company said overall group revenues “are up just under one per cent” for the period from January to April 26.
While describing the result as “pleasing”, Fairfax warned it continued to incur losses “to take advantage of growth opportunities”. Slides published with the report show staff levels are down 26 per cent at the publisher since 2012 as it has slashed costs.
“Events revenue has risen 79 per cent in the six months to December 2014 compared to the same period in 2011”
Why are they comparing event revenue in 2014 with the 2011 figure? Suggests growth over the past year isn’t a number they want to report?
This is a spin-heavy report that invites cynicism. The revenue “growth” appears to be not growth, but acquisition. The actual Fairfax revenue actually fell. The events business – which has been subject to very expensive hirings and investment – is clearly a dog. The digital subscriber numbers are not revenue drivers, so why mention them if not for spin?
Fairfax has set up a line of spining plates and it appears that they now are close to dropping. Could this be why the barnacle Chairman has decided to quietly drop off the ship ahead of the AGM?
Aside from the mixed metaphors Spin has nailed it. The truly amazing question is how the performance of the business could be so ill directed without shareholders going nuts. Don’t those bastards even read the products (which are the opposite of hywoods description in this drivel presentation)
Today’s oz has a piece by their media writer that asserts some superiority in news results versus fairfax. Both are clearly in deep trouble.
Fairfax is desperately pushing its real estate play, which is nowhere near maturity or transparency. News relies on REA and Foxtel, neither of which is going especially well.
Neither company shows any sign of sustaining a media business of any substance. Both are sinking deeper into trivia and malice.