Fairfax Media launches a share buyback as it announces flat profit and revenue down 2.4%

Greg Hywood. Photo: Getty

Fairfax Media posted flat profit $86 million, down 0.6%, and a 2.4% decline in group revenue to $941.7 million for the first half.

Expenses fell 1.2% to $780.1 million. Excluding investment in new opportunities and one-off expenses, group costs reduced by about 4%.

Fairfax announced on-market buyback of ordinary shares over the next 12 months of up to $121 million shares representing approximately 5% of the ordinary shares.

The company declared an interim dividend of 2 cents fully franked.

CEO Greg Hywood says the result is a solid outcome.

“It is the result that we had planned for,” he says. “There are no surprises.”

Early revenue in the second half is 2% to 3% below prior year

For the first half, metropolitan media revenues were down 2.6%, Domain digital revenue up 37.8%, Australian community media revenues down 7.5%, New Zealand revenues down 4.8% and radio revenues down 1.5%.

(Disclosure: Allure Media, the publisher of Business Insider, is 100% owned by Fairfax Media)

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.