But further evidence of the structural shift taking place in the media came in a 4.7 per cent drop in reported revenue, with Fairfax's newspapers bearing the brunt and its online businesses enjoying the growth.

The market warmed to a result that showed Fairfax's tight control of costs had flowed through to earnings before interest, tax, depreciation and amortisation (EBITDA), which rose seven per cent to $639 million.

Write-downs in excess of $600 million, including the sale of the Southern Cross production business, dragged Fairfax $380 million into the red in 2008-09.

Fairfax Media chief executive Brian McCarthy said the result was a "tale of two halves" with revenue rising six per cent in the second half after a nine per cent fall in the first.

EBITDA mirrored that split, with the first half falling 11 per cent only to rise 34 per cent in the second half. But revenue has not returned to pre-GFC levels, reflecting the structural changes affecting the media industry as more eyeballs move away from print to online.

Revenue from Fairfax's metropolitan newspaper division fell three per cent to $895 million, despite a 10 per cent rise in advertising volumes in the second half.

Revenue in the digital division, meanwhile, rose 14 per cent to $212 million and by 22 per cent in EBITDA to $111 million - making it the second-largest contributor to profit after Fairfax's rural and regional newspaper division (Rural Press Ltd).

Costs fell by five per cent and Fairfax benefited from a $50 million saving from interest paid on its debt. In March 2009, Fairfax raised $630 million in a rights issue, half of which was used to pay down debt.

Mr McCarthy predicted first-half earnings growth of seven to 10 per cent as trading conditions continued to improve. So far this financial year, revenue was five per cent ahead of the corresponding period last year.