Massive losses for Australia's Fairfax Media

Australian mining tycoon Gina Rinehart Thursday moved to dump one-third of her controlling stake in Fairfax after the ailing media firm reported staggering losses of Aus$2.73 billion (US$2.87 billion).

Rinehart put 117.3 million Fairfax shares up for sale at 50 cents a share after the media company delivered grim full-year earnings driven by huge write-downs as part of its restructuring plans.

The $59.5 million holding represents one-third of the iron ore mogul's stake and five percent of the company's total value according to a report of the offering in the Fairfax-published Australian Financial Review.

It is the second time in as many months that Rinehart has scaled back her interest in Fairfax, which announced a massive restructure and job cuts earlier this year to cope with sliding advertising revenues and circulation.

She offloaded a four-percent stake in July following a bitter row with the company's directors over board influence and her refusal to sign the charter of editorial independence.

Rinehart first took a stake in Fairfax in 2010 and significantly boosted her holdings this year in a series of share raids which triggered speculation she was trying to increase her public influence.

She has been deeply critical of chairman Roger Corbett, demanding he stand down if he cannot reverse the company's fortunes by November.

Chief executive Greg Hywood, who said he would give up half his Aus$840,000 bonus because of the difficult conditions facing the firm, defended the media company's prospects.

"Fairfax Media has a sound and diversified business, as shown in the underlying results we have reported today," he said.

"These results reflect a challenging trading environment. We continue to drive significant change through the business, consistent with our strategy, and we are responding to a stressed economic environment."

Fairfax, which has newspaper, radio and digital interests, said its net loss in the year to June 30 included Aus$2.9 billion in write-downs, including a Aus$2.8 billion non-cash impairment charge.

Stripping out one-time expenses and write-downs, underlying net profit fell to Aus$205 million from Aus$283 million a year earlier.

Revenue fell nearly seven percent to Aus$2.33 billion.

The biggest write-downs were a reduction in the value of the company's mastheads and trade names from Aus$3.2 billion to Aus$1.23 billion.

The grim result in the 12 months to June 30 compared with a loss of Aus$390 million in the previous year and sent its share price plunging 9.7 percent to 51 cents.

As part of its plan to address plunging newspaper revenues and circulation, Fairfax has previously announced it will slash 1,900 jobs and erect paywalls on its flagship titles.

The Sydney Morning Herald and The Age in Melbourne will also shift from broadsheet format to a more compact, tabloid size and two printing facilities will be shut.

Source: http://news.yahoo.com/massive-losses-australias-fairfax-media-022116903.html

dobie gray bruce springsteen grammy nominations lil boosie new edition austerity rihanna and chris brown back together