Fairfax Media’s New Zealand division has suffered a 12 percent drop in first-half earnings as gains in its online revenue didn’t offset the ongoing advertising decline in its traditional print publications.
The company, which publishes the Dominion Post, the Press, and the Sunday-Star Times newspapers, also indicated that 70 local sub-editing jobs will disappear. Its results saw earnings before interest, tax, and depreciation drop to $30.3m in the half year to December 27, from $34.4m for the same period the previous year earlier. It also cut costs by 6.7 percent to $150.6m in the half.
Sales from its New Zealand business fell 7.4 percent to $181.4m, with advertising revenue falling 9.2 percent to $119.8m. The company says million weak market conditions here affected advertising revenue. Real estate and health helped offset declines in supermarket, retail, and employment advertising.
Like its competitor APN, Fairfax has looked to increase its focus on digital business. Overall, Fairfax’s net profit increased 4.2 percent to A$26.3m on a 1.6 percent gain in revenue to A$958.1m. Its New Zealand division increased digital revenue 43 percent and its stuff.co.nz website retained its top spot. Meanwhile, the APN web site nzherald.co.nz increased its audience by 22 percent.
