Fairfax Media

<html><body>
Fairfax Media has warned that its revenues are down 4 percent to 5 percent on last year's levels, as it prepares its much anticipated Domain separation plan.
In a statement to the share market, the media company reported falling revenue for all parts of its business, except the real estate advertising arm that is about to be spun-off.
The new digital property group, Domain will have an enterprise value of $1.85 billion, less than the numbers being tossed around when private equity interest was briefly being shown.
The only part of the old Fairfax business with revenue growth was Domain, where gross earnings rose 13 percent on the back of an overall 22 percent rise in Fairfax Domain digital revenue.
However the total recent revenue growth at Domain of 13 percent, was down from its recent 16 per cent forecast, along with overall Domain digital revenue growth of 22 percent, coming in below a forecast of 26 percent.
Fairfax said it made the updated financial disclosure as part of the Domain separation.
The company said today's financial update will replace the usual disclosure provided at the annual general meeting, which will be on November 2.
After the spinoff, Fairfax will no longer have direct access to Domain's cash flow and will only receive money from Domain via dividends.
In a disclosure statement Fairfax also said Domain’s costs will increase approximately 13 percent in 2017-18, from $206 million in 2016-17, in line with previous guidance.
The worst decline in revenue was for its metro media division — which includes the mastheads, The Age, The Sydney Morning Herald and the Australian Financial Review — where gross earnings are down 11 percent so far this financial year compared to last.
Australian Community Media, the local newspapers division, has had a 10 percent revenue slide.
Domain has signalled its intentions to be far more than a property advertising platform.
Domain Group is expanding into insurance with the launch of Domain Insure in conjunction with insurance specialist Envest.
Domain Insure, expected to launch later this year, is set to become a must-use digital solution for Domain customers seeking to meet their insurance requirements arising from buying, selling or renting property.
Domain chief executive officer Antony Catalano said Domain Insure adds to Domain’s suite of real estate products and services spanning home loans, utilities connections and trade services "which together deliver on our ambition to meet the modern needs of property consumers throughout their property lifecycle of buying, owning and selling."
Domain’s portfolio of offerings include home loan brokering business Domain Loan Finder, utilities connections business Compare &amp; Connect, home improvement and maintenance business Oneflare, open for inspection check-in management system Homepass, in addition to Domain Insure.
Fairfax confirmed in August it plans to retain 60 percent of the shares in the separately listed Domain, with Fairfax shareholders taking the other 40 percent.
The company also confirmed in August Fairfax Media chairman Nick Falloon will take the same post at Domain.
The board will be:
Nick Falloon, Chairman and Non-Executive Director;
Greg Ellis, Independent Non-Executive Director;
Geo Kleemann, Independent Non-Executive Director;
Diana Eilert, Independent Non-Executive Director;
Patrick Allaway, Non-Executive Director;
Gail Hambly, Non-Executive Director; and
Antony Catalano, Chief Executive Officer and Managing Director.
"Domain is a real estate media and technology services business, covering services across digital and print platforms," Falloon said in the statement.
"The business, which delivered FY17 revenue from operations of $320 million, has a strong track record of growth, with total revenue increasing at a 28% compound annual growth rate over the past three years.
"Domain has a subscriber base of approximately 12,000 agencies and the large majority of all property listings in every state on its site, providing a strong platform to drive national expansion and depth revenue in the future."
Post separation, Domain will incur a range of costs and adjustments attributable to being a standalone, ASX-listed company. 
The total pro forma standalone cost adjustments are $10 million in FY17 consisting of:
$2 million for Domain Board costs, listing and other costs associated with Domain becoming a standalone entity;
$6 million for additional corporate duties; and
$2 million in FY17 reflecting corporate costs attributable to Domain which were previously unallocated to Domain for the purpose of Fairfax Media segment reporting.
The amounts include charges paid by Domain to Fairfax Media.
Following the separation, Domain will continue to be consolidated by Fairfax Media and therefore the incremental costs for Fairfax Media (post separation) will be $5 million, as opposed to $10-12 million for Domain.
The senior leadership team will comprise of:
• Antony Catalano, Chief Executive Officer and Managing Director;
• Robert Doyle, Chief Financial Officer;
• Graeme Plowman, Chief Operating Officer;
• Melina Cruickshank, Chief Editorial and Marketing Officer;
• Simon Kent, Group Director (Domain Media and Developers);
• Tony Blamey, Chief Commercial Officer;
• Mark Cohen, Chief Technology Officer; and
• Trent Casson, Managing Director, Domain Victoria.
 
<div title="Page 9">
 
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Domain's lower revenues ahead of spin-off 

<html><body>
Listing at noon yesterday, Domain shares opened at $3.80.
The stock traded as high as $3.98, before finishing the day at $3.69, reflecting a near $2.2 million valuation. 
Fairfax Media shares fell 30% to 74¢, due to the loss of a 40% stake in the Domain business that has been given to the publisher's shareholders. 
Fairfax Media, including its 60% stake in Domain, is now worth $1.7 billion, but when excluding Domain, the market is valuing the Fairfax rump at about $400 million.
On its second trading trading day Domain (DHG) was trading at $3.75.
The spin-off, long mooted, but first announced in February, saw Fairfax's existing shareholders given one Domain share for each 10 shares they own in the longtime publisher.
Fairfax returned to its spinoff plans after US private equity firms TPG and Hellman &amp; Friedman dropped out of bidding for the publishing group in July.
TPG Capital had lobbed a $2.76 billion bid.
</body></html>

Domain hits stock exchange with near $2.2 million valuation

<html><body>
The Fairfax-backed Domain Group has told staff it was undertaking a HR review of its workplace culture.
It coincides with a series of three articles this week by The Australian Financial Review with allegations of a "Wolf of Wall Street atmosphere" where its former chief executive Antony Catalano allegedly led a “high octane, blokey, boys' club.” 
Catalano was unavailable for comment to Fairfax Media reporters this week, but The Australian reported he had engaged defamation lawyer Mark O'Brien.
An email was sent to Domain employees on Wednesday by the acting executive chairman Nick Falloon who pledged to undertake a review of its working environment.
Falloon’s email to all Domain staff said they “would have seen the AFR report this morning regarding Domain”. There have been two further articles as Fairfax Media ratcheted up the pursuit of their former executive.
The latest article is today headlined, "Antony Catalano: The fall of a party boy."
The Aaron Patrick piece write-off alleged "the Domain CEO represents the first Australian corporate casualty of the worldwide movement against inappropriate workplace behaviour triggered by Harvey Weinstein."
<p data-reactid="416" data-gtm-vis-recent-on-screen-6236702_632="203531" data-gtm-vis-first-on-screen-6236702_632="203531" data-gtm-vis-total-visible-time-6236702_632="100" data-gtm-vis-has-fired-6236702_632="1">Fairfax holds a 60 per cent stake in Domain. The Catalano-led division, mostly Melbourne-based, previously reported directly to the Sydney-based Fairfax chief executive Greg Hywood.
“Be assured that the board and management are committed to ensuring that Domain is an employer of choice. Our future prosperity is based on the quality of our people and creating a positive, safe and welcoming workplace,” Falloon told Domain staff.
“We believe Domain has done well in this regard. But we can always do better.
“Accordingly, we have recently commissioned a review of our working environment. We ask that you all participate in this review so we can further improve our workplaces for the future.”
</body></html>

jchancellor-FAypfDUnLy

Fairfax turns on Catalano as Domain chairman seeks HR workplace environment review 

<html><body><div class="heading">
Fairfax Media director Patrick Allaway and wife Elizabeth have bought back into Mosman.
They've spent $3.1 million on a single-level home that has doubled in price since it traded in 2013 for $1,567,000.
Set on 385 sqm in rose dotted gardens, the home has three bedrooms and two bathrooms.
The couple downsized from their $4.4 million Esther Road home last year.
Its their fourth Mosman abode, having peaked with a Kirkoswald Avenue trophy home sold to UBS boss Matthew Grounds for $14.05 million in 2012.
They briefly resided on the edge of Hyde Park, but sold their apartment in The Residence to Fairfax Media chief executive Greg Hywood for $4.1 million in 2016.
This article was first published in the Saturday Daily Telegraph.
 
 
 
</div></body></html>

firstname1-iYD4UYzvBa

Fairfax Media director Patrick Allaway buys back in to Mosman

<html><body>
Domain has appointed the former Reserve Bank economist Trent Wiltshire as its economist.
He was more recently at the Grattan Institute.
Wiltshire, who joined Grattan in July 2015 after four years as an economist at the Reserve Bank, holds a Master of Public Policy and Management from the University of Melbourne and a Bachelor of Commerce with Honours in Economics and a Bachelor of Laws (Hons) from Monash University.
He resides in a dowdy 1960s Moorabin home which cost $1,025,000 in 2016 after being listed for just three days.
The home now comes with a $1.08 million value estimate by Domain, reflecting annual price growth of almost three percent.
It was marketed with being 250 steps to the business and shopping centre as its major selling point.
Wiltshire has recently been vocal on local traffic issues especially around the proposed Jasper Road and Moorabbin shopping strip.
He will work in Domain's new data and insights unit, Domain Research House.
The unit is being led by newly-appointed content and data director Tobias (aka Toby) Johnstone, who began working with auction results in the SMH newspaper in 2008 under the tutelage of then property editor Jonathan Chancellor, now editor at large at Property Observer.
<img src="https://mumbrella.com.au/wp-content/uploads/2018/09/DOM-Research-House-Logo-800x307.jpg" alt="" width="470" height="180">
As part of the launch, Dr Nicola Powell has been confirmed as senior research analyst, although she calls herself a data scientist.
Eliza Owen has been recruited as a research analyst from CoreLogic.
The new division launched a report by Wiltshire, which looked at Western Australia’s property renaissance. 
"After years in the doldrums, Western Australia is showing signs of life.
"But new Domain research shows that WA’s beleaguered property market could have bottomed out," he wrote. 
He replaces the veteran Dr Andrew Wilson.
The blokeish Domain coterie was recently rocked by the departure of its rising star Chris Kohler.
Kohler now leads authoritative property coverage on the new yourmoney channel, a joint venture launching next month between Nine and Australian News Channel.
</body></html>

Fairfax Media

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Fairfax Media

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News