Media company Fairfax's profit falls, NZ workers picket

SYDNEY - Trans-Tasman media company John Fairfax Holdings Ltd says its net profit dropped 5.9 per cent in 2004-05, down to A$259.69 million ($285.18 million) from the $276.01 million ($303.1 million) reported in the previous year.

But Sydney-based Fairfax -- which also owns a string of New Zealand metropolitan and provincial newspapers, including the Dominion Post -- said its advertising revenue had continued to grow in 2005-06.

And its full-year underlying net profit had actually risen 23.7 per cent due to strong advertising and tight cost controls.

Fairfax, which publishes the Sydney Morning Herald and the Australian Financial Review, flagged further earnings growth in the current half-year, and said the underlying net profit rose 23.7 per cent to A$234.1 million ($257.08 million).

Meanwhile, the Dominion Post building in downtown Wellington is being picketed by newspaper workers angry at their employer's refusal to give them a five per cent pay rise.

More than 40 workers employed at five Fairfax New Zealand community newspapers walked off the job again today as their pay dispute spread.

Workers at the Hutt News, the Upper Hutt Leader, the Kapi-Mana News and the Kapiti Observer have already staged several days of strike action, and have today been joined by workers from the Wellingtonian (formerly Contact).

All five newspapers are owned by the Australian-based John Fairfax Holdings, which also owns The Dominion Post, and has just named former All Black captain David Kirk as its new chief executive.

Engineering, Printing and Manufacturing Union national secretary Andrew Little said that the 3.2 per cent pay rise being offered to the workers was not good enough.

"Fairfax is a highly profitable company which can afford to pay these workers an extra five per cent," he said.

"Five per cent is the going rate this year. It's what most workers are getting, and these people deserve it too."

- AAP, NZPA