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## NOTEs TO THE FINANCIAL sTATEMENTs 

FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 

## 37. sEGMENT REPORTING (CONTINUED) 

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## (C) OTHER SEGMENT INFORMATION 

## (i) SeGMenT ReVenue 

Segment revenue reconciles to total revenue and income as follows: 

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Revenue from external customers includes the operating segments share of net profits from associates and joint ventures. Transactions between operating segments relating to advertising are at a discount from the rate card and management charges between operating segments are on third party terms. 

The consolidated entity operates predominantly in two geographic segments, Australia and New Zealand. The amount of its revenue from external customers in Australia is $1,686.1 million (2012: $1,870.3 million) and the amount of revenue from external customers in New Zealand is $359.3 million (2012: $354.6 million). Segment revenues are allocated based on the country in which the customer is located. 

## (ii) SeGMenT ReSulT – eBiT 

The Board of Directors, CEO and CFO assess the performance of the operating segments based on a measure of underlying EBIT. This measurement basis excludes the effects of significant items from the operating segments such as restructuring costs and goodwill, masthead or radio licence impairments when the impairment is the result of an isolated, significant event. The gains on the sale of Trade Me and the US Agricultural Media business have been excluded from the reportable segment results. 

Interest income and expenditure are not allocated to segments, as this type of activity is driven by the centralised treasury function, which manages the cash position of the Group. 

A reconciliation of underlying EBIT to operating loss before income tax is provided as follows: 

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