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STATuToRy neT loSS AFTeR TAx 

$16.4m 

undeRlyinG neT PRoFiT AFTeR TAx 

$128m 

Significant milestones were achieved during the year that contributed to our objective of simplifying our business and reducing the costs of our business. Projects successfully executed included: 

• Publication of weekday editions of The Age and The Sydney Morning Herald in a compact format from March 2013. The convenience of the new format has been welcomed by many of our readers and positions us for the planned closure of the Chullora and Tullamarine printing plants, scheduled for June 2014. We continue to expect annual cost savings of $44 million from the consolidation of our printing activity as we more efficiently utilise our network of smaller, more flexible, printing plants. 

• Achieving significant cost reductions through the outsourcing of contact centres, and reducing the real-estate footprint of our main Sydney and Melbourne offices. 

• Establishing the Australian Publishing Media division, which consolidates our core publishing activities – spanning metropolitan, regional and community titles – resulting in lower costs and timely content delivery to our audiences across the day. 

• Establishing our digital transaction businesses, which include Stayz and RSVP, as freestanding units that have the support, resources and autonomy needed to deliver on their potential. 

• Establishing Domain on a standalone basis, providing investors with transparency around the financial performance of the high-growth digital elements of the business. 

• Introducing digital subscriptions for smh.com.au and theage.com.au with a metered model that allows a base level of free access. 

At our Investor Day held in June we shared insights into a number of our divisions with investors. We also announced a product review. In early 2013, we published 431 publications and 337 websites, had seven radio stations and almost 100 apps. One element of a Board-led review of the Company’s products and strategy is to thoroughly review each of our products and the contribution made to our overall business. This is one area of a strategy review which has also involved the development of plans for the pursuit of significant new revenue opportunities. The Chief Executive Officer’s Report 

