Despite increasing speculation about the closure of Fairfax print mastheads, the company's chief executive Greg Hywood has insisted print is far from dead.
Hywood's comments stand in stark contrast to previous statements which have indicated the company might be preparing for a digital-only future, and come in the wake of increased industry speculation that some of Fairfax's leading print mastheads might close down in the medium term.
In a presentation to investors in Sydney, Hywood has said: “However – before speculation runs rampant – let me make one thing clear. We do not have any intention to reduce the frequency of print publication of any of our major mastheads in the forseeable future. Why? Because they are profitable.”
However, earlier this week Goldman Sachs released a report which said it expected The Sydney Morning Herald and The Age to become unprofitable and to close by 2015.
Hywood's comments seem to be geared in a different direction to statements he made in October last year, when he said: “Your board and management are clearly and decisively preparing for the time – which may be in three years or 15 years – when print publications in the Metro business can become unprofitable and we move to a digital-only model. We are taking the necessary steps now and will in the future take further action if required. We will manage the business in the world of reality and not sentimentality.
“But while there is cash flow to be generated from print, we will still be there.”
Hywood's comments today come as the company prepares for a new round of cost-cutting, which the company has predicted will lead to an additional $60 million in savings by September, over the $251 million in savings it had previously forecast.
The company will also commence a review of all of its products. It is this review in particular which has spurred Hywood to assure the market that its mastheads are not about to kiss the blade.
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