Fairfax sees benefits from Rural Press merger
By Leah McBride Mensching, Friday 30 November 2007 at 23:16 :: Newspaper Data :: #935 :: rss
Fairfax Media has announced that its merger with Rural Press will secure $22 million in cost synergies for the fiscal year 2008, the Australian reported Friday. This is in addition to the strong first four months of the financial year.
Merger benefits are also expected to be higher than originally promised, climbing to $45 million in 2009, Fairfax said, according to the Australian.
“October trading performance was strong with like-for-like revenue growth in the mid-single digits,” chief executive David Kirk told shareholders at the media group’s annual general meeting.
However, Australia's federal election did cause distraction, causing the company to be unable to give guidance for first-half revenue, Kirk said.
“With the usual disruption of advertising markets caused by the federal election and the subsequent period of adjustment, we are not able to accurately predict the first-half revenue outlook,” he said, according to the Australian.
Kirk also said the acquisition of Rural Press earlier this year has led to integration that is “performing in accordance with our expectations.”




Comments
No comment.
Post comment