Australia’s oldest newswire company lost $10 million in the year before it was sold in an eleventh hour rescue deal, according to documents filed with the corporate regulator.
The annual financial report from Mediality (previously known as Australian Associated Press) reveal the parlous financial position it was in before major shareholders Nine Entertainment Co and News Corp Australia moved to close it down.
AAP’s core newswire service lost $5.4 million alone, with further losses from press release distribution service Medianet and editing unit Pagemasters, bringing the total loss to $10 million for the financial year. The loss was compared to a profit of $929,000 the year prior, which occurred after a major restructure. In 2018, the company posted a $10.5 million loss.
AAP was saved from closure by a group of philanthropists led by former Foxtel and News Corp boss Peter Tonagh after its previous shareholders Nine (owner of this masthead) and News Corp decided they would no longer subsidise the business. The group paid $1 for the newswire, which led to a $899,000 write-down in value in its financial results. Mediality was approached for comment.