Fairfax Media (FXJ) CEO Greg Hywood has told a Macquarie Investment Conference that the company had seen its first (admittedly small) rise in revenue for some time in the four months to April.
That news didn’t impress investors and the shares fell in the widespread selling and closed down 4.7% at $1.05, or five cents.
Investors saw through the modest boast about revenue and saw it was due to the impact of acquisitions in the property business, Domain.
The real story was in its core print newspaper operations in Australia and NZ where the recent weakness continues with revenue gains non existent in the first four months of this year.
Mr Hywood said revenues for continuing businesses edged up just under 1% in the four months to April 26, compared to the same period last year.
FXJ 1Y – Fairfax sees small revenue revenue lift thanks to Domain
He said the was not on a “like-for-like” basis (the best way to compare sales movements) as it included new businesses such as real estate business MMP since February, the AllHomes operation from Canberra (since last October) and taking control of the Macquarie Radio Network last month.
Revenues at the Metro Media division, which includes real estate advertising business Domain, were up about 7%, but revenues from the publishing revenues (The Australian Financial Review, the Melbourne Age and The Sydney Morning Herald) fell 7%.
The company’s old Rural Press business (Australian Community Media) saw an 8% in revenue (which helps explain the big cost cuts in regional papers in NSW and Victoria in recent months), while the New Zealand newspaper business was up less than 0.5% including a currency benefit from the rise in the value of the Kiwi dollar and the fall in the value of the Aussie.
Mr Hywood said revenue at Fairfax’s radio stations was up 9% on a continuing business basis, which excludes 96FM in Perth (which has been sold APN) and includes four weeks of the combined Macquarie/Fairfax Radio Networks.
