Fairfax media is a multi-platform media company with a wide variety of business such as news, enteratinment, radio and advertising through nedia sources both printed and online.
FXJ performs its primary actions throughout Australia and New Zealand. Its significant paper brands are The Age and Financial Review. Additionally, FXJ operates a variety of company publications, websites, and local and community publications.
Organisational restructure
Last week, FXJ declared some changes to its organisational framework in addition to a significant shakeup of its management team. Australian print media companies will be combined under the Australian Publishing Press department in an effort to generate effectiveness and make simpler FXJ’s company framework.
Also, the Sector and Digital Projects companies will function as separate sections. This will allow the team to spend improved resources and management attention to areas of the company likely to generate its future development.
Advertising poor, but benefit increases amongst resource sales
In Feb, FXJ declared a 300% increase in 1H13 net benefit to $386.3 thousand. The benefit leap came mainly on the back of resource income, such as the business's 51% share in NZ-based promotion website, Trade Me, as well as its US farming media companies.
The result assisted cover up a 7% decrease in income, with FXJ experiencing a downturn in promotion income across its significant sections amongst economic doubt. On a positive note costs dropped 3% on-year, whilst the team says it is on track to achieve $251 thousand in total benefits by FY15. The balance piece was also in much more powerful shape, with a net debt to value rate of just 5.1% at the end of 1H13.
Outlook
In its 1H13 results, FXJ suggested that a continual enhancement in customer feeling is required to see a turn-around in promotion circumstances. In the first four months of 2013, the Westpac Consumer Assurance Catalog has improved to its maximum level since Dec 2010. Since last Oct, customer confidence has improved 11.5%.
It appears the RBA’s 2012 interest rate reduces are beginning to have a recognizable impact on confidence, resulting in enhanced managing circumstances for promoters and media companies as well. Taking into account its resource income, organisational rebuild and focus on cost control, FXJ is putting itself in a position where it can be more successful in a slow development environment.
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