Fairfax Media’s (ASX:FXJ) real estate advertising division Domain has posted a 56 per cent increase in revenue in the first few months of 2015. As the company pours money into the project, Domain has become the main focus for the business. The company increased spending to help the business compete with rival companies such as realestate.com.au, which is controlled by News Corporation. Fairfax cited the acquisition of Victoria’s Metro Media Publishing as a contributor to the success of domain. Metro Media Publishing has added several real estate and lifestyle magazines and newspapers to Fairfax Media’s portfolio. Digital revenue for the Domain business was up 34 per cent in the first three months of 2015, while revenue directly from domain.com.au was up 26 per cent.
This success can also be attributed to the struggling traditional publishing businesses such as The Sydney Morning Herald and The Age. The media company also made other moves to diversify its portfolio. The company recently announced a merger between Fairfax Media stations and Macquarie Radio Network. In the new deal, the company will receive a cash payment of $18m while also controlling 54.5 per cent of the shares on issue. A recent announcement named Nick Fallon, the former executive chairman of Network Ten between 2002 and 2010, as the new chairman of the company. He will takeover the position in August. As the company makes significant changes in its business structure, its share price continues an upward trend. FXJ is up 1c, or 1.07 per cent, at 94.5c per share near the end of the market’s close on Tuesday. The rally has advanced FXJ 8 per cent so far this year.
Author: Imran Valibhoy
Mar 31, 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.