Fairfax's print advertising revenue fell 25% to $157.9 million in the first half of the financial year. Digital gained some ground, up 6% to $92.3 million.
Standard Media Index figures for the same period showed print newspaper revenues across the board fell 15.8%. SMI numbers are from media agency bookings only.
Fairfax reported total revenue of $1.083 billion, down 1.2% on the prior corresponding period, while net profit after tax was down 48.4% to $194.2 million, from $401.4 million in FY13 H1.
The company disposed of FRG Asia, InvestSMART and the Stayz Group businesses during the period with net proceeds of $221 million. Fairfax says excluding the profit from business sales, it recorded a profit after tax of $93.1 million, up 12.1% compared with $83.1 million in the same period last year.
Earnings before interest, tax, depreciation and amortisation were up 41.8% to $291.1 million, while EBITDA for continuing businesses were up 2.3% to $178 million.
Chief executive and managing director Greg Hywood suggested the results were decent and that the firm would focus more on profit than revenue.
In a statement to the ASX he said: "We have shown a determination to transform the business through cost reductions and driving new revenue streams. It is these strategies that underpin a half-year result that's starkly at odds with the conventional wisdom that media companies face a bleak future simply because reductions in print advertising cannot be immediately offset by increases in digital revenue."
On metro media, Hywood said: "Improved profitability from metropolitan media was a highlight of the half year, with EBITDA of $81.5 million up 52% on the previous corresponding period. This performance demonstrates the effectiveness of our initiatives to transform and simplify the business.
"While the division recorded an underlying revenue decline of 7.1%, this is partially attributable to product closures and strategic portfolio repositioning. Pursuit of profitability lies at the heart of our transformation program and we have demonstrated a preparedness to forego revenue if doing so will boost profitability. We will continue to make decisions on this basis in the future.
"Our focus on profitable circulation has led to a 9.6% increase in underlying circulation revenue for the half year, with digital subscriptions for The Sydney Morning Herald and The Age having commenced in July 2013, and yield improvement in print. In early February, The Sydney Morning Herald and The Age had more than 116,000 paid digital subscribers, and an additional 100,000 eligible print subscribers who have signed up for digital access."
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