APN announced that its Australian and New Zealand publishing assets had experienced a 10% drop in revenue for the second half of the 2012 calendar year compared to the first six months.

The trading update also said that advertising revenues for both Australian Regional Media and New Zealand Regional Media were expected to suffer a 9% year-on-year fall in 2012.

However, the Australian figures do not include the Coffs Harbour Advocate and the Tweed-based Daily News, which made a big shift away from print in 2011 with a "digital-first" strategy.

APN said: "This innovative model has led to a smaller, more profitable business. Although the revenue base is lower, the combined earnings before interest, taxes, depreciation and amortisation (EBITDA) of the sites is $1.7 million ahead of the prior year."

[Profile: APN Outdoor chief exec Richard Herring]

APN said it had responded to the decline in publishing revenue by finding a combined $50 million of savings for 2012 and 2013. It will also sell its New Zealand regional publishing businesses in Christchurch, Wellington and Oamaru.

The firm has forecast EBITDA of $150-155 million for 2012, with publishing to provide $84-87 million. An underlying net profit of $51-54 million is expected.

EBITDA for APN Outdoor is forecast to have a 25% year-on-year rise in 2012. Outdoor provides about 38% of company revenue, according to the first-half results.

Adshel's market share in Australia is more than three percentage points higher than this time last year and more than five points higher in New Zealand.

APN said its out-of-home business was continuing to invest in large-format billboards and had recently received permission to erect another two in Brisbane.

[LinkedIn: Was Murdoch right to say newspapers are dying?]

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