The Australia-based media company said net profit for the six months ending December 25 fell to A$96.7m (NZ$124.14m), reflecting a five per cent drop in revenue to A$1.23bn, and impairment and restructuring charges of A$39m. It added that, stripping out these significant items, the company produced an underlying profit of A$135.7m, down from A$172.3m in the same period last year.

Greg Hywood, managing director Fairfax, said, “While the results are disappointing, over the last six months Fairfax Media has driven change through the business and we have done it in the midst of a severe cyclical downturn in our major markets.” The company’s turnaround plan aims to save A$170m over three years by streamlining operations geared to support a print dominant environment.

Hywood added that the plane, “recognises that many parts of our business were built at a time when the newspaper was king and print and classified advertising was the biggest drivers of our business success.” New Zealand media and broadcasting revenues declined 8.1 per cent and 8.3 per cent respectively, while revenues at metropolitan media operations fell 6.3 per cent, regional media fell 1.4 per cent, and printing operations fell 10.5 per cent. However, digital sales gained with revenue across the group up 14 per cent to A$189.8m. Fairfax used funds raised through the partial float of online New Zealand auction site Trade Me to pay down A$361worth of debt.

Net debt stood at A$1.12 billion at the end of December, down from A$1.5b in June, and A$1.6b a year ago. An interim dividend of A2c a share was declared, up 33 per cent. Fairfax said it would continue to be affected by tough economic conditions in its primary markets, with advertising revenues in January 7.5 per cent lower than they were a year earlier. Fairfax shares have declined about 42 per cent over the past two years

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