Nov. 10 (Bloomberg) -- Fairfax Media Ltd., Australia’s second-largest newspaper publisher, fell in Sydney trading after reporting a drop in earnings that outpaced analyst estimates.

Fairfax shares fell 0.9 percent to A$1.635 at the close of trading. They earlier fell as much as 4.6 percent, their largest drop since Nov. 2. The benchmark S&P/ASX 200 index rose 1.3 percent today.

Earnings before interest, tax, depreciation and amortization fell 15 percent in the four months ended October amid lower advertising sales, Chief Executive Officer Brian McCarthy told shareholders meeting in Sydney today.

Profit at the publisher of the Sydney Morning Herald and Australian Financial Review is expected to fall 5.6 percent in the 12 months ending June, according to the average of 10 analyst estimates compiled by Bloomberg.

McCarthy forecast a “modest” increase in second-half earnings on improved conditions and rising “confidence” among advertisers.

To contact the reporter on this story: Robert Fenner in Melbourne rfenner@bloomberg.net

Last Updated: November 10, 2009 02:02 EST