Fairfax profit jumps; Domain spin-off being considered

Wednesday, 22 Feb 2017 06:32:49 | Michael Janda

Fairfax has confirmed it is looking at spinning-off Domain later this year. (AAP: Joel Carrett)

Fairfax has almost trebled its profit, posting net earnings of $83.7 million, despite a continued decline in revenue.

The company's sales fell 4.7 per cent compared to the prior corresponding period to $913 million.

However, the relative lack of asset value write-downs boosted the company's bottom line.

Excluding one-offs, Fairfax's underlying profit of $84.7 million was up a more modest 6.1 per cent.

Fairfax chief executive Greg Hywood also confirmed that the company is examining the spin-off of its fast growing real estate classifieds business, Domain.

The move was rumoured in the Fairfax-owned Financial Review on Monday, leading to a trading halt yesterday in Fairfax stock.

"The separation of Domain would further reshape the Fairfax portfolio by adopting a more flexible corporate structure to maximise shareholder value," Mr Hywood today said in a statement.

"Fairfax would continue to own a controlling majority of Domain (between 60 and 70 per cent) while issuing shares in Domain to Fairfax shareholders at the time the separation is implemented.

"The current intention is that no new capital will be raised."

Fairfax will issue an interim dividend of 2 cents per share.

AustraliaPlus

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Fairfax profit jumps; Domain spin-off being considered

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