Massive losses for Australia's Fairfax Media

Struggling Australian media giant Fairfax on Thursday said its full-year losses ballooned to Aus$2.73 billion (US$2.87 billion), driven by huge write-downs as part of its restructuring plans. The result in the 12 months to June 30 compared to a loss of Aus$390 million in the previous year. Fairfax, which has newspaper, radio and digital interests, said the net loss included Aus$2.9 billion in write-downs, including a Aus$2.8 billion non-cash impairment charge and other significant items worth Aus$140 million. Stripping out one-time expenses and write-downs, underlying net profit fell to Aus$205 million from Aus$283 million a year earlier. Revenue fell nearly seven percent to Aus$2.33 billion. Like media companies worldwide, Fairfax has faced sliding print advertising and circulation revenues and the company is in the process of a major overhaul towards a digital future, slashing hundreds of jobs. The biggest write-downs were a reduction in the value of the company's mastheads and trade names from Aus$3.2 billion to Aus$1.23 billion. Fairfax shares plunged more than six percent to 53 cents following the grim results. But chief executive Greg Hywood defended the media company's prospects. "Fairfax Media has a sound and diversified business, as shown in the underlying results we have reported today," he said. "These results reflect a challenging trading environment. We continue to drive significant change through the business, consistent with our strategy, and we are responding to a stressed economic environment." As part of its plan to address plunging newspaper revenues and circulation, Fairfax has previously announced it will slash 1,900 jobs and erect paywalls on its flagship titles. The Sydney Morning Herald and The Age in Melbourne will also shift from broadsheet format to a more compact, tabloid size and two printing facilities will be shut.