Fairfax Media has reported a net profit of $83.9 million for the 2017 financial year.
It’s a turnaround from last year’s $772.6 million loss, when Fairfax wrote down the value of its newspaper mastheads by $989 million.
The market reacted positively to the result and a short time ago Fairfax shares were up more than 1%.
Fairfax detailed plans to spin out its real estate-listing website Domain in the 2018 financial year. Domain will be separately listed on the ASX and Fairfax expects it to begin trading in November.
The company plans to retain 60% of Domain, with the remaining 40% distributed to Fairfax shareholders.
Total revenues dipped by 4.8% to $1.7 billion but underlying profit increased by 7.6% to $142.6 million.
Fairfax chief executive Greg Hywood said the results demonstrate that Fairfax is in great shape.
“The strategy we commenced five years ago has successfully maximised cash flows of our publishing assets and with that built growth businesses in Domain and Stan,” Hywood said.
“Fairfax will act decisively and appropriately – always in the best interests of shareholders – to take advantage of any opportunities created by the potential changes in media ownership legislation, as well as any opportunities to work more productively as an industry,” he said.