Just hours after announcing news of its digital streaming joint venture with Nine Entertainment, Stan, Fairfax has announced its overall group revenue is down 2-3% for the year to date.
At its annual general meeting, Fairfax CEO Greg Hywood said the metro media segment, which includes its real estate arm Domain, is up around 2%. However within that figure, publishing revenue is down 4% despite a lift from Domain's revenue which is up 21% overall.
In addition, community media revenue is down 9% and radio revenue is down 2-3% “but improving.”
“Metro print advertising declines have moderated. The digital advertising environment is competitive. Rural and regional advertising markets continue to be challenged,” Hywood said.
“We remain committed to being a lean and agile organisation that is focused on digital revenue opportunities, building new businesses, and maximising cash flows from our print business.”
In better news for the publisher, Domain Group is reporting revenue of $146 million, with its earnings before interest and taxes sitting at $58 million.
Hywood noted that FairfaxMedia had more than $300million of real estate revenue exposure in the 2014 financial year.
The profit comes as the media company moved Life Media boss Melina Cruickshank, to the new role of group director, content and audiences for the real estate arm.
However, despite Domain's profits, Fairfax chairman Roger Corbett called out the Government for its lack of reform of the 'two out of three' rule, which he said “restricts a modern media industry and fails Australian consumers.”
“Media companies like Fairfax need to have the flexibility to operate across all available media platforms in an environment of intense competition from global media and technology giants for advertising revenue and audiences,” Corbett said.
“There will be inevitable disinvestment in the sector if the legislation doesn't change and that has potential consequences for the quality of information that flows to the Australian people.”
Corbett added that there are “a multitude of possible scenarios” for Fairfax if the legislation changes and that the strength of its mastheads would put it in a good position to “take advantage of any market opportunities that may arise to the benefit of our audience and consumers.”
The comments follow renewed market speculation that Fairfax is in talks with Macquarie Radio Network over the possibility of selling its radio assets.
News Corp also revealed this morning at its first quarter results meeting that it has seen a "tangible improvement" during the last three months compared to previous quarters.
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