Booming economy boosts Fairfax publishing earnings in New Zealand

A booming economy and operating improvements have swelled the New Zealand earnings of newspaper publisher John Fairfax Holdings by more than a quarter.

The Australian company, which includes The Dominion Post, The Press and the Sunday Star-Times in its stable, reported operating earnings from New Zealand rose from $71.6 million to $90.2 million in the half-year to December.

Advertising revenues jumped 10 per cent, and Fairfax said the Sunday Star-Times had registered strong advertising revenue growth despite the introduction of the Herald on Sunday. The Herald on Sunday is published by APN News & Media, which also publishes the Herald. Growth at Fairfax came from classified ads, up 9.4 per cent, and display ads, up 9.2 per cent. Overall revenue in New Zealand was up 3.2 per cent to $281.8 million.

Costs fell 4.1 per cent to $186.5 million, but after stripping out the costs of operations sold, they were up 0.8 per cent.

One analyst said the strength of New Zealand earnings at Fairfax was a good sign for APN, due to report full-year earnings today.

Analysts' consensus is that APN will report an after-tax profit of A$128 million to A$132.5 million, up from $A103.5 million last year.