Australian media group John Fairfax Holdings voiced optimism Monday about boosting its earnings over the coming six months after posting a strong 26 percent jump in net profit for the half-year to December 31.
Outgoing chief executive Fred Hilmer said benefits from Fairfax's acquisitions, notably of the former INL newspaper group in New Zealand, and ongoing cost discipline were driving the company's performance.
He said the company should continue growing strongly, notably if the conservative government of Prime Minister John Howard follows through with plans to ease media cross-ownership restrictions later this year.
"We are well positioned for further revenue and earnings growth, and to take advantage of opportunities that may be afforded by any changes in the media laws," Hilmer said.
Excluding one-off items, Fairfax's net profit rose to 126.1 million dollars (99.5 million US) in the six months to December 31, a 26 percent increase over the 100-million-dollar profit reported for the same period the previous year.
The group said earnings before interest and tax rose 17.7 percent to 212.9 million dollars, although net profit attributable to shareholders fell to 133.5 million dollars from 162.8 million dollars.
Sales were up to 945.2 million dollars, from 883.2 million dollars the previous year.
Fairfax publishes some of Australia's leading newspapers, including The Sydney Morning Herald, the Australian Financial Review and The Age newspaper in Melbourne.
It also owns the Dominion Post in Wellington, The Sunday Star-Times and more than a dozen smaller newspapers in New Zealand since buying the INL stable in 2003.
Hilmer announced last year that he would be leaving the country in 2005, but the search for a replacement has proceeded more slowly than expected and Fairfax said Thursday he would stay on for the rest of the year if required.
"The company is well managed under Fred Hilmer's ongoing leadership, with the company performing strongly across its businesses," Fairfax said.
Fairfax's Australian publishing business strengthened steadily as the second half progressed, with solid trading leading into the Christmas period, Fairfax said.
"Revenue growth accelerated towards the end of the first half, with strong gains in employment and retail advertising, along with significant overall growth in gross display advertising, which was up 9.4 percent," Fairfax said.
Circulation was weaker at the company's big dailies, but improvement programs for marketing and distribution were under way, it said.
Fairfax's business media division also generated strong revenue growth on display advertising especially in employment and commercial property, it said.
Howard's government has long backed proposals to ease restrictions on media companies owning both newspaper and broadcasting assets in the same market.
Efforts to change the media ownership laws have been blocked in the opposition-controlled upper house of parliament, the Senate.
But Howard's conservative coalition won outright control of both chambers of parliament in elections last October and plans a new legislative push once the new Senate is formally installed in