Fairfax profit rises 6.1% and plans to spin-off Domain

Company News

by David Chau

Fairfax (ASX:FXJ) has released its 1H FY17 results. The key points are:

- net profit after tax rose 6.1% to $83.7 million,
- revenue fell 4.7% to $913 million,
- interim dividend of 2 cps (70% franked), representing a payout ratio of 54%
- EPS rose 8.8% to 3.7 cps, thanks to Fairfax’s share buyback program.

Fairfax also announced today that is will conduct a strategic review of the Domain Group.

The company says its plan is to spin-off Domain into a new Fairfax controlled ASX-listed entity, since the online real estate listing website has achieved revenue, earnings and audience to a scale which makes it necessary to operate as a standalone entity.

Under this plan, Fairfax would continue to have a controlling majority of Domain – between 60% and 70%.

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