Fairfax disappoints in earnings report

Australian newspaper publisher John Fairfax said it expected 2006 earnings before interest and tax (ebit) of between A$420 million ($500 million) and A$430 million before significant items, a figure below analysts' expectations.

"The outlook reflects soft advertising markets in major media as a consequence of the weak economic performance of New South Wales and Victoria and disruptions to trading activity, caused by the Commonwealth Games," the company said.

"In New Zealand, while earnings in local currency are tracking ahead of last year, the weaker NZ dollar will affect group results," it said.