Fairfax New Zealand has recorded its first annual loss in four years after writing off more than $NZ100 million from the value of mastheads and buildings.
The Wellington-based division of ASX-listed Fairfax Media Group posted a loss of $75.3m in the year ended June 30, 2016, after recording a profit of $21.9m in the previous year.
Fairfax NZ - publisher of the Dominion Post, Sunday Star-Time, Press and stuff.co.nz website - reported impairment charges of $NZ106.8m, writing off $NZ66.8m from the value of its mastheads, $NZ26.3m from buildings, plant and equipment, and $NZ4.7m from software and websites, according to a report in the NZ Herald.
Redundancy payouts rose to $NZ19.3m, compared to $NZ9.4m in 2015.
At the same time, the company lifted executive pay – management salaries rose to $2.4m from $1.9m - and resumed dividends to its Australian parent, with dividends of $31.4m paid in the year.
Fairfax Media last year slammed the New Zealand Commerce Commission (NZCC) over its opposition to a proposed merger of Fairfax NZ and NZME – the country’s two biggest media companies.
Fairfax chief Greg Hywood says if the merger doesn't go ahead it will be the "endgame" for the company’s New Zealand assets.
The NZCC has expressed concern that the merger would see one media outlet controlling almost 90 per cent of NZ’s print media market. “This would be the second highest level of print media ownership in the world, behind only China,” said chairman Dr Mark Berry in a draft determination.
A final decision by the NZCC is expected on or before March 15, 2017.