Fairfax war intensifies
Thursday 23 February 1995
Despite reporting a small fall in post-tax profit for the six months to December from A$82m (£39m) to A$£81m, Fairfax's results show a 50 per cent rise after an abnormal tax benefit of A$28m, included in the 1993 figure, is excluded.
Fairfax is 24.9 per cent-owned by Mr Black's Telegraph group, while Mr Packer has increased his stake to 16.4 per cent.
In doing so, Mr Packer might have broken Australia's cross-media ownership rules that are meant to prevent television broadcasters from taking a controlling stakes in newspaper publishing businesses.
Australian law defines a controlling stake as owning more than 15 per cent of a company. However, the rules are unclear in that they allow the circumstances of ownership to be taken into account.
The Australian Broadcasting Commission is investigating Mr Packer's stake in Fairfax.
Rupert Murdoch's News Corporation has also been purchasing shares in the company recently. Mr Murdoch has insisted that he has no long-term interest in the company and the stake is only an investment.
His holding is still less than 5 per cent, at which point he would have to disclose his interest in the company.
Mr Black is known to want to increase his stake to 35 per cent, but at present is prevented from doing so by rules that prevent foreigners taking more than 25 per cent of an Australian media company. Mr Black is a Canadian.
Fairfax publishes the Sydney Morning Herald, the Canberra Age and the Financial Review.
The company's improved performance was due to rising advertising revenues, a trend it expects to see continuing through the rest of the year.
Fairfax also anticipates savings from computerisation and commissioning of new equipment.
While the company has secured a fixed-price contract for the supply of news print for the rest of this year, next year's results are going to be hit by a 25 per cent rise in the price of news print costs, the company warned.
It hopes that these can be partially offset by reducing paper sizes and wastage.
Fairfax's turnover rose to A$479m, up from A$417m, a 15 per cent increase.
The company is paying an interim dividend of 3.5 cents, up from 2.5 cents in the first half last year.
Top Gear presenter is no stranger to foot-in-mouth controversy
New essay by JK Rowling went live on Pottermore site this morning
Mike Tyson branded 'superhero' after a surprise good turn
Charlie Sheen could be set to revive his role as a hedonistic womaniser
Review: Mike Leigh's biopic is a rambling, rich character study
Want to ward off (or welcome) trick-or-treaters? Here's how
- 1 'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 4 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
- 5 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
Halloween 2014: From the Screaming Man of Pluckley to the 'White Lady' of the Tower of London - Britain's 20 most haunted places
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
iJobs Money & Business
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...
£45,000 - £65,000: Saxton Leigh: Our client is a well-known APAC Corporate and...