Falling print volumes hit Fairfax Media

Decline in newspaper volumes results in a 6.4 per cent drop of printing revenue for Fairfax Media.

Print revenue was $50.8 million for Fairfax Media’s first half of the financial year results, compared to $54.3 million in the previous year. Over the last year, Fairfax Media has commissioned a new plant in Ormiston while closing down its Burnie plant and consolidating work in Launceston, Tasmania. Volume declines in external printing work were described as responsible for the loss of profit.

All up, the company lost $365.3 million for the first half of 2009. Revenues were down by 5 per cent for Sydney and Melbourne metropolitan newspapers and magazines. In New Zealand, total revenues were down by 11 per cent.

In an attempt at putting on a positive spin, chairman Ronald Walker said that: “We are delivering the very best possible results in an exceptionally difficult economy.”

It has been a rocky few months for the company after it announced plans to cut 550 jobs in August last year, prompting a workers strike. Not long after, David Kirk – former rugby star and PMP boss – stepped down as CEO and was later replaced by Brian McCarthy, who attempted to put on a brave face over the poor financial figures.

“Fairfax Media has reported a credible first-half trading result in the face of a significant deterioration in economic conditions,” he said.

“Fairfax Media has outstanding brands and is better positioned than most other media companies in Australasia to withstand the present economic conditions and benefit from the upturn when it comes.”