Drop in print volumes is bad news for Fairfax Media

Falling volumes drives down revenue for Fairfax Media’s printing division across the trans-Tasman.

In its results for the six months ended 27 December 2009, revenue for Fairfax Media’s printing division was $43.3 million, down 19.5 per cent from the previous year; while earnings were $57.6 million, roughly in line with last year ($58 million).

As a whole, Fairfax Media reported earnings of $268.3 million, down by 12.5 per cent. Total revenue was down 9.2 per cent to 1.26 billion.

Over the past six months, Fairfax has made a number of changes to its printing division, such as commissioning a new Goss press in Christchurch, New Zealand upgrading its Tamworth press with a new Goss Community press featuring six towers and two folders and bringing the printing of two publications, Sunday Life and the TV Guide, in-house.

At a media conference, McCarthy refused to discuss the printing of other Fairfax publications, such as Good Weekend, which are currently printed externally. “We moved these two publications [Sunday Life and the TV Guide] in-house because between Rural Press and Fairfax, we had the capacity to do it,” he said. “It was a sensible decision to spread it [the printing] around the Albury, Canberra and North Richmond plants and there has been only positive reaction from our customers.”

Following its merger with Rural Press, a string of rationalisation followed across the pair’s printing sites. McCarthy dismissed the likelihood of any newly created printing plants. “There are no immediate plans to open new printing plants in the short-term throughout Australia or New Zealand,” he said.

Fairfax Media currently comprises of 16 Australian printing centres and eight New Zealand printing centres.