Fairfax Media (ASX:FXJ) reported a 1 per cent increase in overall group revenue for the period 1 January to 26 April 2015 compared to the previous corresponding period. This is the first time the company has reported a return to revenue in a few years. The company, which owns BusinessDay and The Australian Financial Review, said that while it was pleased with its results, it was important to note that many of the sustained costs came from previous acquisition deals. Continuing business includes 100 per cent of MMP from February and 100 per cent of the Macquarie Radio Network from earlier this month. The 96FM acquisition was excluded from this report.
Revenue for Metro Media, which includes Domain, was up about 7 per cent. Publishing revenues for the division were down 7 per cent but Domain’s overall revenue was up 54 per cent including the benefit from acquisitions. Its total digital business revenue was up around 32 per cent. Australian Community Media revenue was down 8 per cent. The company’s operations in New Zealand were up less than 0.5 per cent, mostly from a currency benefit. Radio revenue was up 9 per cent on a continuing business basis, which excludes 96FM but includes four weeks of the combined Macquarie Ratdo Network. The company also reported a $1.16bn reduction in debt. Shares of FXJ are down 5c, or 4.74 per cent, at $1.01 per share near the end of trading on Wednesday. FXJ is down 0.50 per cent in the last 12 months but has risen 14.86 per cent so far this year.
Author: Imran Valibhoy
May 06, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.