UPDATE 2-Fairfax H1 net up; cost savings on track

(Recasts, adds CEO quotes, analyst comment, shares)

SYDNEY, Feb 21 (Reuters) - Fairfax Media Ltd (FXJ.AX: Quote, Profile, Research, Stock Buzz), publisher of The Sydney Morning Herald, The Age and The Australian Financial Review, posted a 38 percent jump in first-half net profit, helped by acquisitions and a strong performance at its regional businesses, boosting its shares.

The Sydney-based firm said trading in the current second half had followed on from trends in the first half. It said strength in regional businesses offset declining revenues in major cities.

"It's a good result for us, strong, and shows the benefits of diversification and the focus on growth," Chief Executive David Kirk told a briefing.

July-December net profit increased to A$196 million ($180 million) from A$142 million a year earlier. Analysts said the results were solid, although the impact of acquisitions made like-for-like profit comparisons difficult.

"Cost savings are on track and the outlook is for more of the same, so it looks OK," said Deutsche Bank analyst Andrew Anagnostellis.

Fairfax shares rose 3.8 percent to A$4.15 by 0423 GMT in an overall market up 1 percent. The stock had fallen 14.5 percent in 2008 to Wednesday's close, just ahead of a 13 percent slide in the benchmark index.

"It had weakened a bit ahead of the result so perhaps there was a bit of relief that there wasn't anything too unpleasant," noted Deutsche's Anagnostellis.

Kirk said a like-for-like breakdown to take account of the acquisition last May of regional publisher Rural Press showed EBIT (earnings before interest and tax) rose 11.3 percent on a year earlier.