Fairfax Media reports NZ profit growth

Fairfax Media says advertising revenue from its New Zealand media business rose 2.9 per cent in the last six months of 2010. Photo / Hawkes Bay Today

Fairfax Media, the Australian-based publisher of 100 newspapers and magazines and 19 websites in New Zealand, has reported double digit profit growth in its New Zealand Media businesses even though the economy has been slow to recover.

The company's New Zealand media business has reported earnings before interest and tax of $46.1 million in the six months to December 31, up 10.8 per cent on the $41.6 million last year.

Earnings before interest, tax, depreciation and amortisation rose 10.4 per cent to $52.1m.

The online auction business, Trade Me, increased revenue by 11.1 per cent and earnings before interest, tax, depreciation and amortisation by 8.3 per cent to $47.7m. The business was started by New Zealand businessman Sam Morgan who is now a non-executive director on the Fairfax board.

The company said it is investing in product development at Trade Me and the site is experiencing growth in employment listings.

The New Zealand printing businesses is not separated out from the Australian printing business in the result but the company said the Christchurch Press Centre withstood the impact of the Tuesday earthquake. The Christchurch Press business celebrates its 150th anniversary in May.

Commenting on the New Zealand Media business, the company said advertising revenue rose 2.9 per cent to $172.7m, while circulation revenue fell 2.3 per cent to $69m. Total revenue from the New Zealand Media business was $246.4m, up 1.2 per cent on last year, while costs fell 1 per cent to $193.7m.

The company said the introduction of a higher goods and services tax and other tax changes affected property and consumer spending. Employment conditions in metropolitan markets were tough but there were some gains in regional markets.

Revenue from the online and mobile New Zealand Media business grew 40 per cent to $4.3m.

"New Zealand Media continues to perform despite a weaker economy," the company said.

- NZPA