Independent News and Media has said that its underlying performance for the 18 weeks to May 6 is down 5.1% year on year with total advertising revenue down by 7.9%.
In an interim management statement, INM said that its total circulation revenue was down 1.5% on same time last year.
The company said its performance in April was impacted by an 'unusually' high number of public holidays in all of its markets, with normal business patterns disrupted around the Easter period. But it added that normal trading patterns now appear to be returning.
INM said its operating costs continue to be well managed, despite a significant newsprint price increase of 20%. Total underlying group operating costs are down 1.9% year on year, reflecting efficiencies from last year flowing through.
The group said that advertising conditions remain challenging and the market in Ireland has yet to stabilise and remains 'very short-term and erratic'. It added that this has been set off in part by better advertising conditions in South Africa.
It said that overall advertising visibility remains short-term, making forecasting - especially in Ireland - difficult. However, it said that the lower VAT rate on newspapers, announced as part of the Government's job initiative this week, should provide some stimulus for the Irish consumer.
'Assuming more normalised group advertising conditions, the easier comparatives in H2, continued cost vigilance and having eliminated loss-making activities, we continue to target an improvement in group operating profit for the year,' the company statement said.
