Media company Fairfax Media Ltd
(ASX:FXJ) has reported a $380 million loss for the year, due to a slump in advertising revenues.
The loss for the 12 months to June 30 includes $664.3 million in significant items, $513 million related to a reduction in the carrying value of its newspaper mastheads and goodwill.
Net profit excluding one-off impairments and significant items for fiscal 2009 came to $226.7 million.
Earnings before interest, tax, depreciation and amortisation fell 27 per cent to $605 million, from $831.2 million the year before.
Revenue for the year fell 10 per cent to $2.6 billion.
The company says trading results in the first seven weeks of the new financial year indicate that the decline in advertising revenue appears to have bottomed but a material recovery in advertising demand has not yet commenced.
Fairfax Media decoded not to pay a final dividend. Fairfax Media’s 2008 net profit was $386.8 million.
Challenger Financial Services Group Ltd (ASX:CGF) has reported a loss of $91 million for the year worse than the $44.2 million loss recorded last year.
However the company says normalised net profit came to $219 million up slightly on last year.
Just last week Challenger sold its mortgage business to NAB for $385 million.
CEO Dominic Stevens says despite testing market conditions, the company finished the year with an increase in normalised profits and enviable cash and capital balances to fund future growth.
Mr Stevens says the company is well funded and poised to add to its investment management capabilities.
Challenger declared a final dividend of 7.5 cents a share. Challenger Financial Services posted a loss in 2008 after a high of $255 million the year before.
Commercial radio broadcaster Austereo Group Ltd (ASX:AEO) has posted a 15.2 per cent fall in full year profit this morning and says it expects a tough year ahead.
Net profit for the 12 months to June 30 came to $41.4 million, down from $48.8 million the year before.
Revenue fell 2.9 per cent to $258.9 million from $266.7 million the year before.
Chairman Peter Harvie says the company is bracing for a challenging year ahead and says Austereo’s positive set of audience and sales figures will provide a powerful springboard to deal with expected challenging media conditions for the first half of fiscal 2010.
CEO Michael Anderson says while some advertising categories came under pressure, the company saw growth in the food, services, entertainment, medical and media categories.
Austereo declared a final dividend of 5.1 cents a share compared to 6 cents last year. Austereo’s profits have been gradually increasing over the last three years.
