KEY POINTS:
It has been a tale of two businesses for Australian media company Fairfax in New Zealand.
The New Zealand publishing business reported a 29 per cent decline in profit in the six months to December 31 in Australian dollar terms, but online auction business Trade Me posted a 17 per cent increase in profit in New Zealand dollar terms.
The company said its New Zealand publishing business made a A$58.7 million ($75.21 million) profit in the six months to December 31, down from $82.2m in the same period last year. Revenue fell 15 per cent to A$223.9m.
In New Zealand dollar terms, Fairfax Media New Zealand reported an 11 per cent decrease in revenue and 26 per cent decrease in earnings before interest, tax, depreciation and amortisation.
Advertising revenue declined 15 per cent in the New Zealand publishing business and circulation revenue increased 3 per cent.
Total costs in Fairfax Media New Zealand were down by 4 per cent during the period.
Trade Me contributed $38.2m ebitda, up 17 per cent on the same period last year.
"Trade Me remains firmly the No 1 website in New Zealand in auctions, real estate and cars," the company said. The company said Trade Me jobs is the No 2 online employment website in New Zealand.
Fairfax publishes nine daily newspapers, two Sunday newspapers and a number of magazines and community newspapers in New Zealand.
Rival APN News & Media, publisher of the New Zealand Herald newspaper and nzherald.co.nz reports this week.
Last week TVNZ said advertising revenue dropped sharply in January and it was looking for $25m of cost reductions in its business.
- NZPA
