Fairfax Media has reported a continued fall in print revenue but has benefited from the decision to reduce circulation.
Fairfax posted a net loss of $16.4 million for the 12 months to 30 June 2013, although that was impacted by $144.5 million of one-off costs, including a $36.8 million write-off of print assets.
The group's underlying result, a $128 million profit, marked a 37.7% year-on-year decline on 2011-12.
Net debt fell from $914 million to $154 million, "mostly through asset sales but also through cash generation".
Revenue fell 8.2% year-on-year to $2 billion – partly due to a 4.5% fall in revenue from Fairfax's printing operations and a 24.9% decline in metropolitan print ad revenue.
Underlying circulation revenue for the metropolitan newspapers rose 7.1% "following a reduction in unprofitable circulation and cover price increases".
Fairfax has 6 million print readers and an audience of 9.6 million across all platforms, according to the group.
[Related: Fairfax denies newspaper closures]
Chief executive Greg Hywood said Fairfax's online paywall, which was introduced on 2 July, had had "minimal impact" on traffic numbers.
The Sydney Morning Herald and The Age now have 98,000 bundled print and digital subscriptions and 68,000 paid digital subscriptions, he said.
"The circulation strategy we have in place for the Sydney Morning Herald and The Age is working. Circulation revenue for these mastheads is growing strongly," he said.
"The introduction of the compact format enables us to close our large-scale Chullora and Tullamarine print sites next year, which will drive significant printing cost reductions."
Hywood said that although Fairfax was "pulling the levers hard to reduce costs" in its publishing business, it was building new revenue streams in online subscriptions, events, content marketing and marketing services for smaller businesses.
"The Fairfax strategy is increasingly focused on new revenue opportunities – we’ve got a hunger to pursue them, and we’re well-placed to do so," he said.
[Related: More news about newspapers]
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter