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Nine, Fairfax shares sink on revenue red flag

Shares in Fairfax Media and Nine Entertainment have plunged ahead of their planned merger after Fairfax flagged a 5 per cent drop in revenue.

The 177-year-old media group on Friday said group revenue for the financial year-to-date was down 5 per cent on the prior corresponding period, with falls across its metro media newspaper division, community media and New Zealand unit Stuff.

Property listings group Domain, which is 59.4 per cent owned by Fairfax. boosted digital revenue 6 per cent but its total revenue was one per cent lower.

Fairfax spun off Domain last year, retaining a stake.

Nine announced its takeover of Fairfax on July 26 in a deal that will create a $4 billion media giant.

The two companies expect the deal to be completed before December 31, subject to regulatory approval.

Fairfax reported a net loss of $63.8 million for FY2018 with its revenue diving 3.1 per cent to $1.69 billion.

Shares in Fairfax were down 9.5¢, or 12.7 per cent, to 68¢ at 2.30pm AEDT while Nine shares were down 24.8¢, or 11.8 per cent, to $1.852.

AAP

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