Fairfax Media’s group year-to-date revenues are down four to five per cent on last year, the company has warned, ahead of the release of its plan to spin off profitable real estate listings business Domain.
Fairfax on Thursday flagged year-to-date declines in its metropolitan and community news divisions but said revenue for Domain is up 13 per cent so far for 2017/18, with digital revenue for the business up 22 per cent.
The upbeat Domain result already eclipses the publishers’ 2017 full year results, when the Domain Group delivered revenue growth of 8.1 per cent, driven by an 18.8 per cent rise in digital revenue.
Year-to-date revenue for the Fairfax metro media and community news divisions have continued on a loss-making trajectory, down 11 per cent and 10 per cent respectively.
When Fairfax announced full year results in August, metro media revenue had fallen nine per cent for the year, and community media revenue was down 11.7 per cent on the back of weak advertising revenues.
The media group released a statement to the ASX after the close of trade on Thursday, saying it was giving the update ahead of the potential release of scheme documents on Friday, September 22, for its planned spinoff to shareholders of 40 per cent of Domain.
Fairfax has been building toward the separation of its lucrative Domain business following the July decision by US private equity raiders TPG and Hellman & Friedman to pull out of moves to acquire the media company due to the group’s unwieldy business model.
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