Fairfax warns on profit, says Domain split imminent

Fairfax warns on profit, says Domain split imminent

Fairfax warns on profit, says Domain split imminent

Updated 21 September 2017, 18:15 AEST

Fairfax Media warns that its revenues are down 4-5 per cent on last year's levels, as it prepares to reveal its Domain separation plan as early as Friday.

Fairfax Media has warned that its revenues are down 4-5 per cent on last year's levels, as it prepares to reveal its Domain separation plan as early as Friday.

In a statement to the share market, the struggling media company reported falling revenue for all parts of its business, except the real estate advertising arm that is about to be split-off.

The worst decline in revenue was for metro media — which includes the company's major mastheads, The Age, The Sydney Morning Herald and the Australian Financial Review — where gross earnings are down 11 per cent so far this financial year compared to last.

Australian Community Media, the local newspapers division, has seen a 10 per cent revenue slide.

Stuff, the New Zealand media division, has also seen revenues fall 10 per cent, while the Macquarie Media radio division has reported a 4 per cent drop in earnings.

The only part of the business to observe revenue growth was Domain, where gross earnings rose 13 per cent on the back of a 22 per cent rise in digital revenue.

However, even there, costs were expected to be up 13 per cent on last financial year's $206 million, excluding any additional costs related to Domain's separation from the rest of the company.

Fairfax said it made today's updated financial disclosure ahead of "the potential lodgement" of details about the Domain separation with the ASX on September 22.

The company said today's financial update will replace the usual disclosure provided at the annual general meeting, which will be on November 2.

Fairfax said it is continuing to implement cost saving measures across the group.