Bell Potter

In this daily reporting season update, we provide our first impression on key takeouts from Fairfax Media.

Fairfax Media (FXJ)

Divisional EBITDA: Metro Media up 26% to $49m. Domain down 6% to $113m. Australia Community Media down 19% to $73m, New Zealand Media down 5% to $52m, Macquarie Media up 26% to $31.5m. Domain revenue up 8.1% with digital revenue up 18.8% but Print down 12.6%, Metropolitan Media down 9%, Australian Community Media revenues down 11.7%, NZ Media down 6.6% Radio revenues down 1.1%. Domain: margin declined from 40% in FY16 to 35% as costs increased by 17%.FXJ’s trading update for the first 6 weeks of FY18 shows Domain’s overall revenue growth at +16%, with total digital revenue +26%. Domain’s costs in FY18 are expected to grow +13%.

Outlook: FY18 revenue trends are expected to be more in line with FY17 H2 (i.e. digital revenue up 22%; print revenue decline 14%). For FY18, Domain’s costs are expected to increase approximately 13% from FY17’s $206 million (10% like for like excluding acquisitions). Across the Fairfax Group we continue to implement cost savings measures.

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