AAP Finance

Fairfax, Nine shares slump ahead of merger

By AAP Newswire

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

The 177-year-old media group on Friday said that group revenue for the financial year-to-date was down five 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 six 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 closed down more than 13.55 per cent to 67 cents while Nine shares were down 12.38 per cent to $1.84.