Fairfax's NZ newspapers 'subdued' but Trade Me up

Profits from Fairfax's NZ media operations fell 27.8pc in the sixt months to December 31, 2009. Photo / Hawkes Bay Today.

Fairfax Media has turned around a first half year loss into a profit but the New Zealand wing of the trans-Tasman publisher has seen its profits for the six months cut more than a quarter to A$38 million ($46.75 million).

Fairfax, which owns a raft of publications in Australia and New Zealand, including the Dominion Post, The Press, the Waikato Times and the Sunday Star-Times today announced its results for the half year to December 2009.

Overall it reported a rise in first half profit and said it was well positioned to take advantage of a recovery in advertising markets.

Net profit for the six months was A$148.8m, compared to a loss of A$364.8m in the previous corresponding period, when the group wrote down the carrying value of its mastheads and booked restructuring and redundancy charges.

On an underlying basis, net profit rose 5.6 per cent, even though total revenue declined by 12.8 per cent to A$1.26 billion.

However, in New Zealand the media arm's profit of A$38m was 27.8 per cent down on the same half in the previous year as revenue dipped 12 per cent to A$195.5m.

The majority of media and digital operations were experiencing media growth but the New Zealand publishing market remained subdued, said chief executive Brian McCarthy.

Despite the poor performance, online operations, which include Fairfax Digital and the New Zealand-based Trade Me auction website, saw profits up 11.3 per cent to $53.1m on the back of revenue rising 8.1 per cent to A$101.8m.

- NZPA