Fairfax Media has punched an NZ$100 million hole in the earnings of its New Zealand business with a write-off of values of mastheads and buildings.
The result is a loss of NZ$75.3 million for the year ending last June, its first in four years. The previous year, the owner of the stuff.co.nz website and publisher of the Dominion Post, Sunday Star-Times and The Press recorded a profit of $21.9 million.
Some $NZ66.8 million has been written off mastheads, $NZ26.3 million from buildings, plant and equipment, and $NZ4.7 million from software and websites
A merger which sees the NZME. business which was divested by APN News & Media acquire the Fairfax NZ business is being considered by regulatory body the NZCC, with a final decision expected on or before March 15.
In a draft determination, the NZCC has expressed concern that one media company would control almost 90 per cent of the country's print media market, "the second highest level of print media ownership in the world, behind only China," chairman Mark Berry said.
Fairfax Media chief executive Greg Hywood has slammed the NZCC's opposition to the proposed merger - saying it would be "endgame" if it does not go ahead - but the company has since acknowledged the presence of an unsolicited potential bidder for the business. The National Business Review reported that between $100-120 million was on offer.