Media release – Fairfax Media Half-Year Results

FAIRFAX MEDIA REPORTS NET PROFIT AFTER TAX OF $142.2 MILLION, UP 18.6%

UNDERLYING NPAT OF $121.4 MILLION (PRE NON-RECURRING ITEMS) FOR THE SIX MONTHS TO 31 DECEMBER 2006

EBITDA UP 2.9% TO $270.6 MILLION (PRE NON-RECURRING ITEMS)

FAIRFAX DIGITAL EARNINGS UP 42%

INTERIM DIVIDEND OF 10 CENTS PER SHARE, UP 25%

David Kirk, CEO

“Fairfax Media’s expansion and diversification have delivered steady revenue and earnings growth despite weak economic conditions, particularly in New South Wales and to a lesser extent in New Zealand.

Our initiatives to reshape our publishing business, grow aggressively online and build an integrated digital media company are being achieved.

Major achievements for the half include:
• Acquisition of the Border Mail, with synergy benefits being realised.
• Excellent circulation and readership results at our major mastheads.
• Strong revenue and earnings growth at Fairfax Digital driven by robust organic performance.
• Trade Me performing fully as expected, with a successful launch into jobs.
• Excellent cost management of the publishing businesses with like-for-like cost growth in Australia of 1.1%, and in New Zealand of 0.4%, compared to the previous corresponding period. Permanent real cost reductions over the last 18 months in Australian publishing amount to $44 million.

The proposed merger with Rural Press will create Australasia’s largest integrated metropolitan, regional and rural print and online business.

The year ahead will be one of implementation and execution. Our focus will be on:
• Completion of the merger with Rural Press and the efficient combination of the two businesses, and the achievement of considerable synergies;
•The move to our new headquarters and the establishment of our integrated newsroom;
• Aggressive growth online;
• Continuation of our structural reshaping of the metropolitan newspapers;
• Continued cultural change at Fairfax Media to reflect the transformation of our business.

I am satisfied with our progress and confident about our future.”


Ronald Walker, Chairman

“We are pleased to report, as promised, solid interim results, with continued record returns to our shareholders.

Fairfax Media is clearly benefiting from our strategic direction and the investments we have made in growth across our publishing businesses, in print and online.

Completion of the proposed merger with Rural Press will greatly strengthen Fairfax Media and its future, reinforcing our position as Australasia’s largest media company.

We have excellent prospects for continued strategic growth to provide further wealth to our shareholders, and enhancement of our role as one of the leading media companies in the world.

I thank our staff for a great result.”

Please click here to download full report.

Source: Fairfax Media
Release Date: 12 Feb 2007 10:05