Fairfax predicts revenue down 8 percent

Fairfax chief executive Greg Hywood expects company revenue will be down eight percent since last year

FAIRFAX Media expects its revenue will be down eight percent since last year, the company has said in a statement today.

Chief executive Greg Hywood said an update was appropriate given media commentary on market volatility.

“At the half year results announcement on 23 February I advised that January 2012 revenues were 7.5 percent below the corresponding prior period and that the difficult trading environment was likely to continue,” said Mr Hywood.

“This trading environment has continued and the company expects revenue for the second half to be approximately eight percent below last year.”

Fairfax expects to report financial year earnings of around A$500 million – down nearly 18 percent from last year’s A$607.4 million – before interest, tax, depreciation and amortisation.

The company’s three year A$170 million cost-cutting strategy is “ahead of plan” with the 2012 targeted goal of A$40 million exceeded.

Net debt at year end will be below A$1.1 billion due to tight management of expenditure and cash conversion, the statement said.

Fairfax will also repay its Eurobond of A$557 million on June 15.

Shares in the media company have fallen nearly 90 percent since 2008.

Last week saw their lowest ever trading point of 58 cents.