Trinity Mirror is planning a further round of efficiency savings after issuing a warning that profits would be down 10pc this year.
Shares in the regional newspaper publisher, whose flagship titles include the Liverpool Echo and Evening Chronicle, Newcastle, slumped by 25pc after today’s profits warning.
Trinity, which also publishes several national newspapers, says advertising revenues are suffering a “marked” decline and promised to seek “further efficiencies in operations.”
The group’s shares were trading at 113p at around 10.30am today, down 25pc from the opening price of 141.75p.
A company statement said: “We have seen a marked year-on-year decline in advertising revenues across our businesses during May and June and this is expected to continue for the remainder of the year.
“In view of these difficult trading conditions and the uncertain outlook the group currently anticipates the full-year operating profit to be some 10pc lower than expectations.
“Month-on-month volatility remains and this could worsen as we trade through a very uncertain economic outlook.
“In the challenging advertising environment management continues to manage the cost base tightly and will continue to seek opportunities for further efficiencies in operations.”
Trinity is on track to save £7m this year as part of a plan to cut costs by £20m by the end of 2008.
The company will release interim results on July 31 for the six months to the end of June.