Tag Archives: oneoff

Fairfax profit rises on one-off gains

Updated February 21, 2013 15:32:33

Media group Fairfax has reported a huge surge in its half-year profit, but says weak demand in the advertising market is still restricting its earnings.

For the six months to the end of December, Fairfax has made $386.3 million.

That was up almost 300 per cent compared to its profit for the same period the year before.

However, the vast bulk of the profit ($312 million of it) came from discontinued operations, making much of it a one-off gain.

In fact, excluding significant one-off gains and losses, the company’s underlying profit fell from $136 million to $83 million.

Revenue was down from $1.18 billion to $1.1 billion, however the publisher’s expenses also fell by around $80 million as it slashed staff and moved to close major printing presses.

The company says its restructure and slimming down of the business contributed to its profit result, with a 10 per cent reduction in staff and a sell-off of some businesses which reduced debt from a around a billion dollars to $200 million.

Fairfax’s chief executive Greg Hywood says the company now has the strongest balance sheet in the industry, but there are more cost savings to be made.

“We are finding smarter ways to work that deliver us better outcomes and save us money,” he said.

“We are taking a fresh look at territories long considered sacred cows and smashing silos that long seemed untouchable. We are pursuing additional structural initiatives and cost savings beyond those currently envisaged.”

The company has cut its fully-franked interim dividend to 1 cent per share from 2 cents per share.

Fairfax shares were down 2.75 per cent to 53 cents by 10:25am (AEDT).

Topics: business-economics-and-finance, company-news, media, australia

First posted February 21, 2013 10:29:55

Saudi Telecom Q4 profit falls 79pc on one-off charges

mobile-phone 400JEDDAH: Saudi Telecom Co (STC), the Gulf’s No.1 telecom operator, reported a 79-percent fall in fourth-quarter profit on Monday, missing market expectations, after it took one-time charges related to affiliates in South Africa and India.

STC, which is majority government-owned, made a net profit of 468 million riyals ($124.8 million) in the three months to Dec. 31, down from a 2.28 billion riyals in the prior-year period.

Analysts polled by Reuters on average forecast STC – the largest Gulf telecom operator by market value, with operations across the Muslim world from Indonesia to Turkey – would make a quarterly profit of 2.4 billion riyals.

The former monopoly attributed the fall in net profit to charges on adjusting the fair value on its investment in South Africa’s Cell C and Aircel in India – leading to a one-off non-cash charge of 641 million riyals – and changes in Indian telecom regulations which resulted in a charge of 544 million riyals, related to Aircel.¬† Quarterly operating income fell 32.5 percent to 1.9 billion riyals.

Revenue from services for the fourth quarter fell 1.7 percent to 15 billion compared with 15.2 billion for the corresponding quarter last year.  Full-year profit for 2012 was 7.4 billion riyals, down from 7.7 billion riyals in 2011.

Soaring demand for broadband has lifted earnings in recent quarters, with STC offering bundle packages to woo customers back from rival operators Etihad Etisalat (Mobily) – an affiliate of UAE operator Etisalat, and Zain Saudi – part-owned by Kuwaiti group Zain.

STC said in a separate statement that it would issue a 0.5 riyal per share dividend for the fourth quarter.

Shares in STC closed at 44 riyals on Sunday.

Copyright Reuters, 2013