In the six months to 31 December, the newspaper giant reported a 40% fall in post-tax profits to $97.6 million off the back of a 5% fall in revenue to $1.23 billion.

Printing sales took a hit, falling 10% to $253.5 million as its mastheads felt the squeeze of the dull advertising market and falling newspaper sales.

“Revenue declines reflect volume decreases consistent with pagination reduction by publishers,” it said.

The company is restructuring under the banner of ‘Fairfax for the Future’ as it tries to find $170 million of savings over three years.

The company closed a New Zealand print centre in Blenheim during the half, and the financial report gave some pointers toward its plans for more downsizing across its printing operations, which include coldset super sites in Chullora, Sydney and Tullamarine, Melbourne.

It said: “Rationalisation of Chullora [is] announced for coming year and distribution rationalisation opportunities [are] being explored.”

“Reducing print and increasing digital distribution” is a key part of the cost-saving strategy, according to the report.

“Achieving a reduction in publishing costs is one part of Fairfax Media’s commitment to improving operating performance and growing long-term sustainable earnings. Progress toward this objective was evident in the December half, with publishing expenses down 4% from last year.”

It remains unclear exactly how it will rationalise print. Last year, Fairfax revealed it would either merge production with rival News Limited or move to a smaller print site.

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