Fairfax media limited [ASX:FXJ] are trading at 0.74, a steady increase of 2.38% at the time of writing.
Fairfax’s world-first partnership with Google has really boosted the value of their audience and inventory. And the company hopes this will sustain publishing earnings into the medium and longer term.
They are seeing a growing presence in the Australian community media. This is notable, considering the print to digital debacle that most publishers are struggling with.
Why Fairfax Media’s share price jumped over 2% today
Fairfax’s Chief Executive Greg Hywood spoke at the 2018 Macquarie Australia Conference in Sydney, last month. He discussed a new revenue model, which could be part of the reason for the increase in share price. Growth is steady, and this doesn’t look likely to drop off soon.
The model itself is multi-faceted and spans beyond traditional reliance on advertising, print subscriptions and circulation. And although it has lower revenue than in previous times, it is more sustainable and valuable, featuring multiple business models and diversified revenue streams.
Fairfax are seeking to leverage their key publishing assets of big audiences and marketing inventory. They’ve already seen this in practice with the growth of their businesses, such as property-listing site Domain and entertainment subscription platform Stan.
What’s next for Fairfax Media?
They hope to continue to influence their extensive marketing inventory and bring in new traffic.
If today’s increase in share price is any indicator, they will likely expand into new products and services, driving new revenue streams in the future.
Editor, Money Morning
PS: Not convinced about Fairfax Media? Top Aussie stock picker Sam Volkering has revealed four Aussie stocks he believes could be the top performers this year. Download your free report ‘The Four Best ASX Stocks’ today.