Sydney: Fairfax Media’s shareholders are set to vote on spinning off its lucrative property advertising division, the Australian publishing giant said on Friday.
Like its international peers, Fairfax — the owner of major mastheads The Sydney Morning Herald, The Age and The Australian Financial Review — has seen profits hit by dwindling advertising revenue and circulation figures. But its property advertising Domain Group has benefited from digital classifieds growth and a booming domestic housing sector. The float of Domain had been flagged for some months, with Fairfax hopeful it would get a better market valuation if listed separately on the stock market.
“The separation is in the best interests of Fairfax Media shareholders and will, over time, deliver greater value to... shareholders than the current structure,” Chairman Nick Fallon said in a message to shareholders. “The business... has a strong track record of growth, with total revenue increasing at a 28 per cent compound annual growth rate over the past three years.” — AFP
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