Shares of Fairfax Media Limited (ASX: FXJ) will be a focal point in the market today after the media heavyweight revealed its half-year report to the market.
Here are five things you need to know about Fairfax's half-year report for the period ended 27 December 2015:
- Revenue increased 1.6% to $958.1 million
- Profit rose 4.2% to $27.4 million
- A 50% franked interim dividend of two cents per share was declared and is payable 18 March 2016
- Fairfax's Metropolitan Media, which includes the Domain property business, reported a 10% jump in revenue and 24% increase in operating profit.
- Debt reduced 46% — the company is now in a net cash position.
"Today's solid results are a testament to the unrelenting efforts by everyone in the company to drive the performance of the business," Fairfax CEO, Greg Hywood, said. "Our diversified portfolio of businesses delivered a pleasing 2.8% increase in group revenue to $958 million for continuing operations."
The Domain digital property classifieds business is the crown jewel in Fairfax's operations and continues to grow well.
"Domain's outstanding 74% increase in EBITDA (up 46% excluding the impact of one-off costs in the prior period) contributed to an improved Group operating EBITDA of $161 million," Mr Hywood added. "The Domain businesses saw digital advertising revenue growth of 37%, and Domain.com.au revenue grew by 38%, an acceleration from 30% in FY15."
Looking ahead, the company said revenue in the first seven weeks of the second half is down 1% to 2% on last year's figures. Over the same period, however, Domain.com.au revenue was up an impressive 25%.
"Our focus in the second half is on continuing Domain's strong growth, driving our emerging businesses, and delivering on our cost reduction programs," the company's media release read.
