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In spite of the crippling effects of drought throughout a significant portion of the continent, Rural Press has announced a record net profit after tax of $87.1m, an increase of 27.3 per cent over last year’s record profit of $68.4m. Revenue increased by 9.8 per cent to $515m. The result was driven by the company’s core Australian publishing and printing activities, demonstrating the widespread economic strength in regional markets across Australia.John Fairfax, Rural Press chairman, says that the Board was particularly pleased with the advertising volume growth of nine per cent in Australia, notwithstanding the drought conditions in some of the company’s markets. He found it very satisfying to achieve strong advertising revenue growth with conservative levels of advertising rate and cover price increases, and was also encouraged by the improvements in the US agricultural publishing business.
Australian publishing and printing activities increased revenue by 12.4 per cent to $468.3m and earnings before interest and tax by 22.5 per cent to $130.7m.
Australian agricultural publishing recovered revenues and volumes lost in the prior year, particularly from increased volumes in property, national and classified advertising. Its New Zealand publications maintained last year’s level against a more cautious agricultural economic environment, while the group’s metropolitan and regional operations achieved another record in advertising and circulation volumes. They produced record revenues on modest rate gains and, coupled with diligent cost control, improved operating margins overall.
The significant regional acquisition during the year was the 85 per cent interest in Harris & Company Limited based in Burnie, Tasmania, publisher of The Advocate, a paid daily newspaper circulating in the State’s north west region.
The group’s investment in improved production, printing and communications technology continued during the year; the more significant being a new web fed printing press in Wendouree, Ballarat, press capacity upgrades at Ormiston and Dubbo, as well as computer to plate technology at Wendouree. The investment in technology will continue in the new financial year with a greenfield press facility in Mandurah, WA and increased colour capacity at North Richmond, Canberra, Launceston, Port Macquarie, and Whyalla press sites.
