Fairfax has recorded a mixed interim result, with its online and transaction businesses propping up the falling earnings from its publishing operations, in a market it described as challenging.
Overall group revenue for the six months to December 2011 was $1.23bn, which was a 5% drop compared to the corresponding period in 2010. Overall net profit after tax fell by 41% for the same period.
Publishing revenues were down 8% for the period, while digital revenues were up by 14% to $189.8m
Financial impairment of the company's metro mastheads and restructuring charges totalled $39m for the period.
Net profit after tax, excluding those charges, was $135.7m which was an 18% decrease on the previous corresponding half. On the bright side, the company cut production costs by 4%.
The metro media division continued to be the drain on earnings, with revenues for the division falling 6.3% to $605.4m and earnings before interest and tax falling 27.4% to $74.4m.
The regional media business was a bright spot in an otherwise grim balance sheet, with revenues staying relatively flat, recording a 1.4% drop. Earnings for the division fell by 7.2% to $89m.
The company's recently floated online auction business Trade Me performed strongly, meeting its prospectus guidance. Half year earnings reached $41m, which was about 2% up on the prospectus and around 9% up on the previous period.
Broadcast media, which includes the metro radio stations 2UE and 3AW, was hit by a 37.8% drop in earnings, totalling $9.7m. Fairfax sold off its regional radio assets last year and was looking to offload the metro business but did not receive an acceptable offer.
The company's printing operations did not fare much better, recording a 20% earnings hit at $45.3m and the New Zealand media earnings fell by 20.4% to $32.4m.
"Fairfax Media is managing a very difficult trading environment. We have made substantial progress in transitioning and strengthening our business over the past 12 months," the company said.
"Focus remains on improving operating performance through both cost reductions and growing long term sustainable earnings," the company said. "We will continue to seek opportunities to reduce debt and strengthen our balance sheet."
Despite the difficult period, the company declared an interim dividend of 2 cents per share.