Monday 23rd February 2009 |
Text too small? |
Australia's second-largest newspaper company had a loss of A$365.3 million, or 24.8 cents a share in the six months ended Dec. 31, from a profit of A$187.7 million, or 12.5 cents, a year earlier, the company said in a statement. Sales rose 0.5% to A$1.45 billion.
The loss constitutes "the very best possible results in an exceptionally difficult economy," chairman Ron Walker said. "The board and management will focus on extracting the best possible performance from our existing portfolio of assets."
Shares of the Sydney-based company fell 2.4% to A$1.025 on the ASX and have slumped 74% in the past 12 months. The biggest drop was in New Zealand, where revenue tumbled 15% in the first half, while pretax earnings fell 29%.
Fairfax cut its dividend to 2 cents from 10 cents and suspended its dividend reinvestment plan.
The outlook for the rest of the year may be just as grim. The company said trading conditions have weakened in January and February and classified advertising is expected to remain weak for the rest of the financial year.
Brian McCarthy, who took over from David Kirk in December, said Fairfax's expansion into online ventures like the Trade Me auction site and its Fairfax Digital sites in Australia have helped buffer the company from dwindling returns from publishing and radio stations.
The company took a A$447.5 million impairment charge against its mastheads, licenses and goodwill. Its newspapers include the Sydney Morning Herald, the Australian Financial Review and the Age, along with New Zealand's Dominion Post and Sunday Star-Times.
It also took a A$62.4 million restructuring and redundancy charge.
No comments yet
PaySauce Quarterly Market Update - September 2024
October 2nd Morning Report
Rua Releases Annual Report for Year Ended 30 June 2024
SCL - Settlement of orchard sales
The Warehouse Group 2024 ASM and Director Nominations
AIR - Update on Chief Operational Integrity and Safety Officer
Comvita Limited - Annual Report 2024
September 27th Morning Report
Spark announces departure of Finance Director
FBU - Retail Entitlement Offer Opens