More than 50 per cent of Fairfax Media's first half earnings came from its online real estate business, underscoring the company's transition from print.
Domain's pre-tax earnings rose 74 per cent to $65.7 million in the six months to December 27, making it by far the biggest contributor to the media group's total earnings of $98.6 million.
Digital accounted for $50.3 million of that, and chief executive Greg Hywood said on Friday the publisher of The Sydney Morning Herald and The Age newspapers was continuing to invest in its online growth businesses.
"We are managing a structural shift in publishing from print to digital as consumer preferences demand," Mr Hywood said.
"We continue to adapt our business model to this reality."
Domain's performance helped Fairfax lift half year net profit 4.2 per cent to $27.4 million from $26.7 million a year earlier.
That came despite a 1.3 per cent decline in print circulation and subscription revenue from $99.5 million to $95.8 million.
That $3.7 million decline was mostly offset by an additional $2.2 million in digital subscriptions, which grew 13.9 per cent to $18.0 million from $15.8 million.
Fairfax announced earlier this week that the editors of The Sydney Morning Herald and The Age will now report to the head of digital channels.
Andrew Holden, editor of The Age for the past eight years, is also leaving the company.
Regional advertising revenue was down 12.1 per cent on a decline in supermarket-related print retail advertising, although that was partially offset by the increase in print real estate.
Fairfax's metro publishing costs dropped four per cent following the closure of print sites in Tullamarine and Chullora, and more cost cutting is planned.
This week Fairfax said it was outsourcing editorial production of its Australian masthead titles, cutting 70 jobs in its New Zealand hub.
It paid out $34.7 million in redundancy payments in the half year to December.
Mr Hywood said revenue in the first seven weeks of the second half of the financial year has been between one and two per cent down on the prior corresponding period.
However, Domain remains the star performer with 25 per cent organic revenue growth.
Fairfax shares closed down three cents, or 3.61 per cent, at 80 cents.
REAL ESTATE THE KEY FOR FAIRFAX MEDIA
* Net profit up 4.2pct to $27.4m
* Revenue up 1.6pct to $958.1m
* Interim dividend unchanged at two cents per share, 50 per cent franked
