Without the cost of significant items, the company’s results are not nearly as dismal with the reported $2.5bn revenue in line with last year and net profit at $273.7m, a 1.8 per cent slide from the year before.

While earnings decreased 5 per cent to $607.4m, net debt was reduced by $247.3m to $1.5bn and total dividends for the year reached 3 cents per share an increase of 20 per cent.

Commenting on the results, Hywood says, “Fairfax Media is aggressively responding to structural changes in the media landscape while also dealing with the challenges of a prolonged cyclical downturn.

“While we have reported an after tax loss for the year for statutory purposes, it is important to highlight that this is due to substantial impairment and restructuring charges. The vast majority of these charges are of a non-cash nature and have no impact on the operating strength or debt levels of the Company.”

In a statement to the ASX, the company outlines that trading conditions have shown some improvement. While advertising revenues are down 4 per cent compared to last year, they appear to be stabilising from the last quarter of 2011 financial year when advertising revenues were down 6 per cent.

The statement continues, “Visibility in advertising markets still remain opaque and general economic trends do not give us confidence that we will see any significant rebound in revenues in the current half.

A number of cost reduction programmes are being implemented across the company to partially offset this revenue downturn.”

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