54 MANAGEMENT DIsCUssION AND ANALYsIs REPORT TRADING OVERVIEW The 2013 financial year saw a continuation of difficult trading conditions with subdued advertising markets in both Australia  and New Zealand. Total reported Group revenue declined by 8.2% to $2,033.8 million from the prior year. Operating segment  revenue trends, as compared to the prior year, show Metropolitan Media down 11.9%, Regional Media down 10.4% and New  Zealand Media down 4.7%. Broadcasting revenue improved 8.1% from the prior year. Group digital revenue increased to  $295 million and now comprises 14% of total revenue.  During the year there was a focus on improving circulation revenue by removing unprofitable distribution channels, a reduction in  discounting, and a series of cover price increases. As a result, Metropolitan Media circulation revenue increased by 5% in the year. Our real estate business, Domain, continues to move through the transition from a largely print-based business to a predominantly  digital business with 2013 being the first year where digital advertising exceeded print.  The Regional and New Zealand divisions saw deterioration in revenue which accelerated in the second half of the year.  Revenue declines were experienced across most advertising categories and improvement in cost reduction run rates assisted  in offsetting some of the impact on profitability. Performance of the Radio division improved in the year, with revenue and market share growth, improved profitability and  a higher degree of integration into other parts of the Fairfax Media business. The decline in Group revenue has been mitigated to some extent by an on-going focus on cost management. Total Group  expenses declined by 5.9% to $1,690.5 million, excluding significant items. Metropolitan Media cost reduced by 10.7%, Regional  Media by 8.0% and New Zealand Media by 2.3% offset by an increase of 4.8% in Broadcasting and costs associated with the  implementation of the Fairfax of the Future program. The business remains on track to deliver the Fairfax of the Future savings that have previously been communicated.  Annualised run-rate savings of $311 million are on track to be delivered by June 2015. We continue to work on further revenue  and cost opportunities. The second half of the financial year saw a number of significant milestones and operational changes, including the launch  of the weekday compact editions of The Sydney Morning Herald and The Age in March 2013. We also announced a major  restructure of our Australian operations with the formation of Australian Publishing Media as well as moving a number of digital  operating businesses to act on a more standalone basis.  In July 2013 we introduced a digital subscriptions model for The Sydney Morning Herald and The Age. We are pleased with the  early progress of this important initiative. As reported in the December 2012 interim results, the company disposed of its US Agricultural Media business for US$79.9m  on 14 November 2012, and its remaining 51% interest in Trade Me Group Ltd for A$605.5 million (net of transaction fees) on 21  December 2012. As previously stated, proceeds from the sale of these businesses have been applied to the reduction of debt. The Group booked a significant impairment charge of $444.6 million after tax in 2013. The charge was predominately in the  Regional Media business along with smaller impairment charges in the Metropolitan Media and Broadcasting segments. Details  of the nature of the impairment charges can be found in Note 4 and the assumptions used in the estimation of the recoverable  amount of intangible assets and the sensitivities around the key assumptions are outlined in Note 14. Net cash inflow from operating activities was $186.5 million. After capital expenditure of $60.6 million, dividends paid of $61.4  million, the impact of the sale of Trade Me and US Agricultural Media and repayment of borrowings, cash and cash equivalents  increased by $171.1 million. Net debt for covenant purposes was $154.5 million at 30 June 2013 and remains within covenant limits. The Company continues  to have substantial headroom with debt repayments in the 2014 financial year covered by $533.5 million of cash on deposit and  undrawn committed facilities, plus free cash flows that will be generated during the year. On 25 July 2013 the Company completed the redemption of US$224 million of US Private Placement (USPP) notes.  FINANCIAL POSITION