NZ paying off for publisher Fairfax

By SIMON HENDERY

Publisher John Fairfax Holdings has upgraded its first-half earnings guidance saying it expects its newly acquired New Zealand operation to be more profitable than previously predicted.

Sydney-based Fairfax bought the publishing assets of Independent Newspapers for $1.2 billion in June.

It said at the time it expected the New Zealand operation - including magazine titles, and metropolitan, regional and community newspapers - to beat a full-year earnings before interest, tax, depreciation and amortisation (ebitda) of $130 million for the 12 months to June next year.

But Fairfax chief executive Fred Hilmer said yesterday the company now expected its New Zealand operations to achieve ebitda of at least $75 million for the half-year to the end of December.

"Assuming revenue trends continue, this would be consistent with Fairfax New Zealand ebitda of approximately $140 million for the full financial year, compared with the guidance of ebitda of $130 million given at the time of the acquisition."

At a group level, the company expected earnings before interest and tax of A$175 million for the first half of the financial year.

"After a flat July and August, trading in Australia since September has continued to grow, as previously foreshadowed, at about four per cent ahead of last year," he said.

"At the same time Fairfax New Zealand is trading at stronger levels in all segments of our publications."