Fairfax shares are up 20% in early trade after the Company posted a substantial rise in profitability despite declining revenues

Fairfax shares are up 20% in early trade after the Company posted a substantial rise in profitability despite declining revenues. As anticipated the cost reductions were a main feature of the result with annualized savings amounting to $260million. The top line figures again shows a slide in revenues although it appears this was largely expected by the market. These comments from CEO, Greg Hywood, 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 traditional media companies face a bleak future simply because reductions in print advertising cannot be immediately offset by increases in digital revenue. Coverage from SMH on the following link and analyst briefing at 11am. (VIEW LINK)