Fairfax Media Shares Are On A Tear Following Its Return To Profit

Fairfax CEO Greg Hywood. Photo: Getty

Fairfax Media shares jumped almost 8% as the publishing group announced a triumphant return to profit for the first time in six years.

The shares were up 7.91% to $0.955.

Chay Flack, equities dealer at CMC Markets, said: “Fairfax has managed to cut down to fighting weight after reducing costs and selling assets over the past year and increasing its online presence,” Flack said.

The publisher posted a $224.4 million profit for the 2014 financial year, an improvement on the $16.4 million loss recorded in the prior year.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for continuing businesses was $306.4 million up 1.8% on the prior year. Revenue was down 3% to $1.972 billion.

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

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