The News Limited owned Australian newspaper is reporting this morning that rival Fairfax Media Ltd
(ASX:FXJ) could boost its earnings by ditching the print editions of The Age and The Sydney Morning Herald.
The Australian quotes Macquarie analyst Alex Pollak as estimating the Fairfax newspapers would deliver an extra $5 million in earnings this year if the publisher delivered the content exclusively via e-readers, such as Amazon's Kindle and Apple's iPad.
Earlier this year, Fairfax said its printing costs would rise by as much as six per cent in 2010.
It also reported strong revenue growth for its online businesses, including Fairfax Digital in Australia and Trade Me in New Zealand.
Fairfax Media posted a $380 million loss for the year to 30 June 2009.
