Half year results reveal that the Nine regional newspaper and printing business ACM had a difficult six months, as did the New Zealand newspaper business, known as Stuff, with Nine now putting both divisions up for sale as a result. Nine says it has already had several offers of interest for the two businesses.
Nine's metro newspaper business (also formerly Fairfax) saw the print editions stabilise under its ownership, with circulations rising by one per cent in the six months to December, with print advertising revenue falling by one per cent.
Together, Digital & Publishing reported revenue of $328m (of which less than half was derived from Print, and less than a quarter from Print Advertising), and a combined EBITDA of $60m, up 39 per cent for the half.
Metro Media reported overall revenue growth of 4 per cent after three years of single digit declines. Continued strong readership of the Group’s mastheads drove a 12 per cent growth in digital revenues, and saw the stabilising print revenues (both in terms of circulation and advertising).
Metro Media’s ongoing focus on costs resulted in a further decline of $6m. EBITDA increased by 58 per cent to $40m, the fifth consecutive half of EBITDA growth for the Metro Media business.
ACM suffered with the Australia-wide drought affecting both agricultural and regional markets and publications. Revenue declined by 8 per cent, and EBITDA dropped by 42 per cent to $21m for the half.
Stuff experienced similarly difficult advertising conditions in its core market of New Zealand, reporting an EBITDA decline of 23 per cent to $15m.