Trinity Mirror chief Sly Bailey has told business leaders that the current downturn being experienced by newspaper publishers was primarily cyclical in nature.

She told them that an explosion in technological development - in particular broadband uptake - had swept away all the old certainties.

Speaking to a meeting of Cardiff Business Club, she said: "There's little doubt that some of the 'old media' companies will eventually be swept away with them.

"However, Trinity Mirror doesn't intend to be one of them. How newspapers, TV companies, radio stations and magazine publishers respond to the digital challenge will determine whether, long term, they stand or fall.

"There's no question that the internet represents an enormous challenge to our business models, as we face the twin threats of consumers accessing the web for news and entertainment and advertisers following the eyeballs.

"I would argue, however, that the immediate impact of this trend on advertising has been somewhat overstated.

"We remain convinced that newspapers, as printed products, will remain a powerful medium for many years to come. I don't wish to sound complacent... we are not. But to focus solely on the threats, as opposed to the opportunities would be a huge mistake."

She stressed that digital revenue was growing fast at Trinity Mirror, publisher of the Cardiff-based Western Mail, but it still accounted for only a small proportion of overall turnover.

And she added: "I do believe though that the essential attributes at the heart of newspaper business - powerful brands, journalistic excellence and effective platforms for advertisers - are as relevant and compelling in today's digital age as they have always been."

Following a four-month strategic review Trinity Mirror has put up for sale its sports division - which publishes the Racing Post - along with regional titles in the Midlands, London and South East.

But she said investment in Wales was a continuing commitment.

She said: "Our £18m investment in our printing facilities, the largest ever press investment made in Wales, the fact that we bring work from England to Wales - through our third party contract printing and our redevelopment plans for our site here in Cardiff - I think demonstrates that we believe life is local.

"It's a continuing investment in and a commitment to printing in Wales, unlike some other newspaper groups who have transferred their operations to England and with that removing Welsh jobs for Welsh people."