Fairfax reports profit of $224.4m on back of asset sales
Publisher Fairfax Media has posted a $224.4m profit for the 2014 financial year, well up on 2013 result which saw it record a loss of $16.4m on the back of further writedowns and its staff redundancy program.
The result was also boosted by the sale of online travel business Stayz, with significant items after tax totalling $66.7m. Company revenue was down three per cent $1.972m while the EBIDTA profit – earnings before interest, depreciation, taxation and amortisation – was up 1.8 per cent $306.4m.
Underlying EBITDA – the best like-for-like comparison with previous years – was $312.7m, down on last year’s $315.7m.
“Transforming a business as diverse as Fairfax was always going to be multi-year journey,” said Greg Hywood, CEO of Fairfax in a statement. “Our achievements to date are reflected in the the stable operating earnings performance announced today, a result that has been achieved despite continued structural change in our markets.”
I just love the media speak from Hywood…multi-year year? A nice softer way of saying many years I guess…5 years? 10 years?
Gina rinehart will buy fairfax and take it private within weeks
Yes, propped up by asset sales and strong performance from domain , but a good result nonetheless given the inexorable decline of their core print business. (The very muted response from the Aus/News Corpse to the results also suggests there’s not a lot wrong with these numbers)
Revenue down across the board. Cost cuts greater than profit increase. Digital ventures going nowhere. Products collapsing under the weight of top-down directives and poorly aimed cost reductions.
The worst of all: very good brands are trashed. Would anyone buy the SMH or The Age today? No.
Even the Fin did not rate a mention in the results which suggests that it too is drowning in this bog.
And what do they talk up? Domain! The mysterious Catalano venture.
Nice work Corbett folks. Enjoy your pay packets.
$24m in digital revenues? 10 years ago i was running a ringtone download business that did more revenue than that and i’ll bet at a much better margin. Today Apple et al have shown there is no issue with asking ppl to pay for content on mobile.
So, do we have a Content problem Fairfax? Truth is there’s nothing to read anymore let alone pay for. All the content innovation and ppl with something fresh to say are in the so-called blogs or monthly mags.
Take out the asset sales and Domain, and the numbers don’t look great — not for their core publishing business, at any rate. The talk of selling off Domain continues to bubble, but that would leave Fairfax with just a publishing business that is going backwards. The numbers on digital subscriptions are interesting (and at least Fairfax are transparent on this, unlike News) but a little disingenuous to say that at $24m, it’s up $19.2m on last year — they only launched their paywalls last June so that’s comparing one month’s revenue vs 12 months. But is $2m/month in revenue — is that really a stellar figure? What would be more interesting is to see the revenue trajectory for digital subscriptions. My guess is that it is slowing. I suppose we’ll find out at next year’s results!
Looking forward to the normal ARMY of Fairfax haters getting stuck in. Corbett does need to go.
@Jamma: some of us are just sad that our favourite media fell into the hands of Corbett and Hywood (and, judging by the pay rises, Hambly). The whole thing resembles Mao’s cultural revolution in which victory was declared annually and the nation fell into despair.
Who is going to reveal the Obeids and Richos and Hartchers? Who is going to question Abbott’s or Hockey’s or Shorten’s next dopey moment or look behind the RBA’s shady dealings or stand up when the banks shaft the public? Not Rupert, to be sure.
Chairman Mao needs to go, along with Madam Jiang and the underling sock puppet.
Reynolds, you may be right. That will mean two mining magnates will have Fairfax.
Gina – media, and Clive – seat.
@ context: no, not $24m in digital revenues. It’s $24m for digital subscription revenues. Digital advertising revenues are in addition to this and considerably more — although growth in digital ad revenues is slowing. Only up by 6% last year.
Is there anything in the financial results about all the new revenue streams Greg Hywood told us Fairfax would be pursuing at the unveiling of last years results: content marketing, data, events, marketing services for small businesses?? A year later, you’d think he might have something to say about how this is going for them. Given the precipitous decline in print ad revenue and the sluggish /declining growth in digital advertising $$, they’re going to need all the new revenue strems they can muster