Are regionals 'killing the radio star'... or is it the other way around? Radio-focussed APN is to quit its once-core Australian regional publishing business while it's down, unwilling to provide the investment it says it needs.

With Queensland's depressed mining sector contributing to the familiar problems of print publishers, the group has announced it will sell its ARM division despite "positive results" and a $40 million reduction in costs over the last three years.

Although revenue for the division fell seven per cent in 2015 - from $202.1 million to $188.5 million - local display advertising revenues were up by one per cent on the previous year, to $87.1 million. Audience revenues were down four per cent and national revenues down 13 per cent.

The Australian Regional Media division consists of 12 daily newspapers, 60 community and non-weekly publications and 30 regional news websites mostly along the Queensland and NSW coast, including growth areas such as the Sunshine Coast. New Zealand print interests - grouped as NZME. in preparation for a separate deferred float - are not included.

Recently-appointed chief executive Ciaran Davis says that while print subscribers are "dwindling", ARM's digital audience has grown - with total online audience up by 22 per cent - and a metered paywall launched last year in Toowoomba converting 86 per cent of trial subscribers.

A process to divest ARM is underway, and Davis says talks were being held with a number of parties. "New ownership should give ARM the flexibility to invest where required, to continue providing quality news and content to its audience, without having to compete for APN's capital."

In his statement, he describes APN as "a long term supporter" of regional publishing. In fact it is the business on which APN News & Media was built when the former Provincial Newspapers Queensland assets were acquired by O'Reilly family interests from News Limited at the time of its 1987 acquisition of the Herald & Weekly Times.

APN's group profit after tax from activities which also include radio stations - including the Kiis network - and outdoor advertising, was $70.2 million for the six months ended December 2015, down from $75.2 million the previous year. revenue was ip one per cent $850 million, and EBITDA also rose one per cent to $166.2 million.

Today's statement says outdoor revenue from Hong Kong fell 27 per cent to $37.9 million, with revenues from loss-making Buzplay and Bus body also falling. Australian outdoor business Adshell grew eight per cent to $159.5 million.

The ARN radio division, which includes iHeartRadio and content agency Emotive, grew 22 per cent, with EBITDA increasing by a quarter to $82.8 million.

A three per cent fall in revenue from NZME. was attributed to a 16 per cent decline in its GrabOne business.

Pictured: Starting blocks - APN says the divestment process is underway (APN photo)