Fairfax sees advertising downturn

A modest downturn in advertising revenue is putting a slight squeeze on all sectors of Fairfax New Zealand's media holdings.

New chief executive Joan Withers, who has been at the helm for about eight weeks, said yesterday that growth in advertising revenue had seen a "slight softening" in the past three to four weeks.

She said it was difficult to tell whether the decline was due to "pre-election jitters or winter blues ... or an aberration".

The softening comes on the heels of the 9.4 per cent spike in year-over-year advertising revenue the division reported earlier this week. For the year ended June 30, 2005, the Kiwi business contributed $419.4 million in advertising dollars to parent company John Fairfax Holdings, Australia's second-largest newspaper publisher. Net earnings at the New Zealand company were up 19.1 per cent to $180.1 million.

APN News & Media, owners of the New Zealand Herald, acknowledged a softening in Auckland's advertising market at the end of June, as well. APN chief executive Brendan Hopkins attributed the shrinkage, which was mainly felt in classifieds, to the election.

Withers also said the company, which publishes the Dominion-Post and the Waikato Times and others, was on the hunt for acquisitions within New Zealand.