Fairfax plans to retain up to 70 per cent ownership thus benefiting from Domain's anticipated increase in value and any dividends. Analysts estimate Domain could be worth as much as $3 billion in coming years.

Fairfax shares were up 8 per cent at the market close on Wednesday afternoon at 94¢ after emerging from a one-day trading halt.

Chief executive Greg Hywood revealed this could be the first of several companies to mushroom out of Fairfax's publishing business.

"People should see publishing as an asset that can drive new business and Domain has been the proof of that … It does not need the mothership any more, it can stand on its own two feet," he said.

In coming years Fairfax may do the same with Stan and Drive, he added.

Streaming service Stan was launched in January 2015 as a joint venture with the Nine network and has grown to 700,000 subscribers. It is expected to reach cash flow break-even point within 18 months. Drive is Fairfax Media's online car classifieds site.

The result released on Wednesday showed that in the six months to December 2016 Fairfax's total revenues were $913 million leading to a pre-tax profit of $84 million. Domain's revenue increased from $154 million to $163 million, but its underlying earnings dropped 15 per cent to $50 million as it increased expenditure on technology.

Revenue from metropolitan media, regional media and New Zealand media declined from $727 million to $664 million, but lower costs increased underlying earnings from these three divisions from $76 million in the first half of 2015-16 to $85 million a year later.

The radio business enjoyed an increase in revenue from $68.9 million to $69.6 million.

Fairfax announced the appointment of US-based Mickie Rosen to its board. Ms Rosen is currently on the board of Pandora Media, a music streaming service, and is a senior consultant at Boston Consulting. She is a former senior executive of Yahoo's global media and commerce division.

Meanwhile, Mr Hywood confirmed Fairfax will continue to publish and deliver newspapers for some years yet.

"The time is not right for weekend print only," he told BusinessDay, which is published by Fairfax Media as part of The Sydney Morning Herald and The Age.

"We see seven days for the metro mastheads and six days for The Australian Financial Review as an absolutely viable [and] profitable approach for some years yet and that's the approach we are going to take."

Mr Hywood said he has been convinced to keep weekday papers by an increase in subscriptions where the print and digital bundle is most popular.

Meanwhile, post-split Domain's costs are expected to increase by up to $10  million annually as it funds its own board and listing costs and takes responsibility for "corporate costs currently borne by Fairfax but attributable to Domain, and commercial agreements with Fairfax for certain services".

Fairfax won't receive a windfall from listing Domain, unlike when it floated and then sold out of New Zealand site TradeMe specifically to reduce debt.

"This is not about raising money, this is about getting the proper market valuation for Domain. Opening it up so it can have a range of shareholders – who might have anti-publishing mandates – to be able to invest in the business."

Fairfax shareholders will be given up to 40 per cent of the shares in Domain while Fairfax retains the rest.

Asked what Fairfax will look like without Domain, Mr Hywood said it is up to the market place, not him, to predict how much each company will be worth after the split.

Mr Hywood also commented on speculation that Fairfax may merge with the Nine network if the government changes media ownership laws.  Every media company is looking at what those changes mean and is talking to other companies and "considering what the best options are for the future".

"But none of those discussions are even remotely close to any sort of deal or decision or anything," he said.

He added the mooted merger is "just speculation around supposition" pushed by investment bankers who want to see it happen.

Fairfax will pay an interim dividend of 2¢ franked at 70 per cent.