In a letter to investors, Greg Hywood, chief executive officer, Fairfax Media says, “We do not have any intention to reduce the frequency of print publication of any mastheads in the foreseeable future. Why? Because they are profitable.”

Hywood says, “Fairfax will never be about using the profits of good businesses to cross-subsidise poor performing assets. We have been clear that we will not produce unprofitable newspapers and we stand by that.”

The fundamental initiative from Fairfax Media is the consolidation of its core publishing activities into its new Australian Publishing Media (APM) division.

Hywood says, “The formation of APM allows us to reduce duplication through a more ordered grouping of our businesses and activities, and to drive additional revenue by leveraging our core business – news, business media, lifestyle and community media.

He says, “One important outcome of the restructure is that it will allow us to deliver an additional $60m in savings by the end of this September, over and above the $251m that we have previously set out.”

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