Fairfax Media posts $380 loss in earnings
24 Aug 2009
Fairfax Media has blamed cuts in advertising revenue coupled with the economic downturn for the $380 million loss in earnings. The media company said its underlying earnings were $605 million for the 2009 financial year 27 per cent lower than the previous year.
The company said that the slowdown, paring of advertising revenue and competition from online media are challenges that impact the result.
According to Fairfax Media chief executive Brian McCarthy, a recovery in the advertising sector was not expected anytime soon and advertising levels were plumbing the bottom, with little change over the past months.
He added that the company would continue to explore strategies to enhance existing operations and spur growth in a difficult business environment. He added he could not rule out introduction of charges for reading on-line content of the company's publications.
News Corporation chief Rupert Murdoch had recently announced that the company would introduce paid access to all its news websites.
According to analysts, Fairfax should follow the lead but that was may not be the only answer.