Fairfax Media Ltd will outsource sub-editing at its flagship newspapers, CEO Greg Hywood has announced. Industry watchers also believe Hywood will sell the company’s radio assets as part of a wider company overhaul to shore up market support, The Australian reported today.
Investors and analysts believe selling radio stations 2UE in Sydney, 3AW in Melbourne and 4BC in Brisbane make sense, said one fund manager. Meanwhile, Fairfax is also planning to outsource sub-editing of news, sports and business stories at The Age, The Sydney Morning Herald and The Canberra Times to Pagemasters, a subsidiary of the Australian Associated Press (AAP), The Australian announced in a separate report.
Pagemasters has been editing feature sections for The Sydney Morning Herald, the Sun-Herald, The Age and Sunday Age since September 2008, according to a report by the AAP.
Outsourcing the 350 jobs, as well as cutting down on printing operations, is expected to save the company AU$15 million a year.
If Fairfax does not sell its radio stations and pays a dividend this year, it will need to borrow AU$50 million in the next fiscal year, the Herald Sun explained. Selling the radio stations would result in a payroll savings of $15 million a year, which would be reabsorbed in operating costs.
Investors and analysts believe selling radio stations 2UE in Sydney, 3AW in Melbourne and 4BC in Brisbane make sense, said one fund manager. Meanwhile, Fairfax is also planning to outsource sub-editing of news, sports and business stories at The Age, The Sydney Morning Herald and The Canberra Times to Pagemasters, a subsidiary of the Australian Associated Press (AAP), The Australian announced in a separate report.
Pagemasters has been editing feature sections for The Sydney Morning Herald, the Sun-Herald, The Age and Sunday Age since September 2008, according to a report by the AAP.
Outsourcing the 350 jobs, as well as cutting down on printing operations, is expected to save the company AU$15 million a year.
If Fairfax does not sell its radio stations and pays a dividend this year, it will need to borrow AU$50 million in the next fiscal year, the Herald Sun explained. Selling the radio stations would result in a payroll savings of $15 million a year, which would be reabsorbed in operating costs.
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