Fairfax (FXJ) is a leading Australian media company with a range of prominent newspapers such as The Sydney Morning Herald, The Age, and The Australian Financial Review.

On 3 May, FXJ warned that full year operating earnings are expected to be 6.1% lower than the prior year.

FXJ anticipates FY11 EBITDA to be $600 million, down from FY10’s $639.1 million.

The group said second half revenue was down 4.5% so far amid lower advertising levels, whilst operational costs were tracking higher due to the development of new iPad applications.

A stronger Australian dollar was also weighing on earnings, in addition to the poor cyclical trading conditions.

Fairfax was one of the market’s shares to sell on the day of the update, sinking 8%.

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Fairfax Media (FXJ) is a blue chip diversified media company with a market capitalization of over $3.4 billion.

FXJ has posted a FY10 net profit of $282.1 million, swinging from a $380.1 million loss a year earlier.

On an underlying basis, net profit rose 23% to $278.7 million, beating market forecasts, with core earnings at most of FXJ’s divisions recording growth from a year ago, making it one of the ASX stock picks.

Earnings at the Australian Regional Media business fell 2% amid lower advertising revenue, however this was offset by strong growth at FXJ’s online division.

The first seven trading weeks of FY11 have been positive for FXJ, with revenues up 5% on-year, and if current trends continue, first-half earnings are expected to grow by the high single digits.

FXJ declared a final dividend of 1.4 cents per share, and its share price soared 4.4% on Friday.