Fairfax warns of continuing deterioration

Farifax Media’s trading situation has got worse and management have frozen their own pay, the company has told the Australian Stock Exchange. CEO Brian McCarthy said in a statement:

“In the weeks since Easter, a clearer picture has emerged in relation to trading conditions in advertising markets in both Australia and New Zealand. It is apparent the markets have continued to deteriorate and although the rate of deterioration has abated, advertising levels are not expected to show any marked improvement at least for the rest of this financial year.”

He predicted that the company would report a $600m profit this year – down more than 26%.

“Demonstrating the benefits of the Company’s diversification programme, a more resilient performance from regional publishing, broadcasting and digital businesses has reduced the impact of more significant advertising declines in the metropolitan publishing business,” added McCarthy. “Notwithstanding the advertising revenue declines, market shares have improved in key advertising categories. Also, circulation revenues have improved over the prior corresponding periods.

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