News | Business
22 Aug 2017 15:32
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    Fairfax NZ posts annual loss

    Fairfax New Zealand posted a loss of $75.3 million in the year to June 30 last year, recording its first annual loss in four years.


     
     

    Fairfax New Zealand posted its first annual loss in four years last year.

    The Wellington-based unit of ASX-listed Fairfax Media Group reported a loss of $75.3 million in the year ended June 30, 2016, marking the first time the books were in the red since 2012.

    A year earlier it turned a profit of $21.9 million.

    The bottom line was weighed down by impairment charges of $106.8 million as the publisher of the Dominion Post, Sunday Star-Time, Press and stuff.co.nz website wrote off $66.8 million from the value of its mastheads, $26.3 million from buildings, plant and equipment, and $4.7 million from software and websites.

    Redundancy costs also featured highly at $19.3 million, up from $9.4 million in 2015.

    Key management salaries rose to $2.4 million from $1.9 million.

    Fairfax Media's New Zealand division has been in a state of flux over the past year as it seeks to merge with rival publisher and radio station operator NZME in an effort to fend off what it sees as its biggest threat in Google and Facebook, who dominate online advertising.

    The prospect of that took a knock when the Commerce Commission ruled against such a deal in a draft decision over the concentration of power and influence under the umbrella of one publisher.

    In trying to talk the regulator around, Fairfax and NZME have downplayed the size of likely job cuts among frontline reporters, with just 10 per cent to 13 per cent of between $136.5 million and $218.7 million in estimated savings over five years to come from "a reduction in duplicated journalist roles".

    Group chief executive Greg Hywood has said if the merger doesn't go ahead it will be "endgame" for the New Zealand assets, which Fairfax bought for $1.19 billion from Rupert Murdoch's Independent Newspapers Ltd in 2003.

    The company has confirmed it received an unsolicited bid from a mystery buyer in a deal that's reported to have been between $100 million and $120 million.

    Fairfax New Zealand resumed payments to its shareholder in 2016 with dividends of $31.4 million paid in the year.

    It suspended them a year earlier when its Australian parent injected $76.5 million when the local publisher rolled out a new model for its national newsrooms, dropping regional newspaper editors for regional editorial managers based in Auckland, Wellington and Christchurch to try and drive digital platforms, which it sees as replacing dwindling revenue from its traditional newspapers.

    The mastheads, which were once valued at $1.12 billion, are now valued at just $175.2 million as at June 30, 2016.


    NZN




    © 2017 NZN, NZCity


     Other Business News
     22 Aug: Greencross makes inroads into pet market
     22 Aug: Comvita gains as earnings beat guidance
     22 Aug: Ingham's posts 2.5pc gain in FY earnings
     22 Aug: Mercury Energy returns record profit
     22 Aug: No rush to 5G mobile in NZ
     22 Aug: Quitline offers value for money: study
     22 Aug: Club comments disappointing: Maloney
     Top Stories

    RUGBY RUGBY
    Black Ferns boost bench for US semi-final More...


    BUSINESS BUSINESS
    Greencross makes inroads into pet market More...



     Today's News

    Rugby League:
    Roosters look to beat Sharks NRL hoodoo 15:27

    Entertainment:
    Jay-Z says Kanye West was "crossing a line" when he spoke badly of his wife Beyonce at his Sacramento gig last year 15:16

    Rugby League:
    Dragons must beat flu first, then Panthers 14:57

    Entertainment:
    Emma Bunton says a Spice Girls reunion tour is "unlikely to happen" 14:46

    Entertainment:
    Jamie Oliver likes being an embarrassing dad 14:16

    Business:
    Greencross makes inroads into pet market 14:07

    Basketball:
    NBL schedule tweak challenges Breakers 13:47

    Entertainment:
    Elisabeth Moss is "boring" 13:46

    Law and Order:
    Great Barrier policing cleared 13:27

    Entertainment:
    Robin Thicke and Paula Patton have reached a custody agreement 13:16


     News Search






    Power Search


    © 2017 New Zealand City Ltd