MELBOURNE Aug 10 Australian newspaper publisher
Fairfax Media is considering a writedown of more than
A$1 billion ($1.06 billion) on the value of its top newspapers,
a report in a rival newspaper said on Friday.
The board of Fairfax was meeting on Friday to discuss the
writedown, which could be announced with the profit results on
Aug. 23, according to The Australian newspaper, which is owned
by News Corp.
The market capitalisation of Fairfax is just A$1.25 billion,
while goodwill and intangibles last year were put at A$5.3
billion, the report said.
The share price has slumped by one-third over the past year
to a record low, with the losses continuing even as mining
magnate Gina Rinehart lifted her stake in the publisher.
Fairfax, which publishes The Sydney Morning Herald and The
Age, and other media groups are struggling with downturns in
circulation and a slide in advertising revenue as traditional
media are challenged by online options.
Both Fairfax and News Corp have announced massive job cuts
and cost-cutting programmes.
This week, News Corp announced a $2.85 billion pre-tax
impairment and restructuring charge, mainly linked to its
Australian publishing business.
(Reporting by Victoria Thieberger; Editing by John Mair)