West Australian Newspapers (WAN) earnings missed the expected AU$222.6 million in earnings by 1.4 percent, causing the company to worry about its advertising revenue, The Sydney Morning Herald reported Wednesday.

WAN shares are down by more than 9 percent to AU$8.14, after having recently been worth AU$8.26. Classified advertising revenue fell by 1.7 percent since the beginning of July this year.

However, WAN's net profit grew by 11 percent to $121.9 million in the first half of 2008, “boosted by a strong state economy and major internal improvements,” The Sydney Morning Herald reported.

The profit was possibly brought on as a result of a $210 million upgrade of the Herdsmen press plant, according to chief executive Ken Steinke.

We also invested significantly in our marketing, circulation and distribution arms, said Steinke, according to The Sydney Morning Herald.

Newspaper revenue was up by 3.4 percent to $366.4 million whereas that of the magazines augmented by 55 percent to $16.7 million.

Kerry Stokes, Seven Network chairman who owns a 22 percent share in WAN, criticised WAN's relatively slow revenue increase.