Trinity Mirror’s regional newspapers returned a half-year profit of £16.9m in the first six months of 2012 despite a £12m drop in revenues.

Figures out today covering the period January to June show a 7.1pc fall in revenues from £151.2m in the same period last year to £139.1m in 2012.

But with the group continuing to keep tight control of costs, operating profit rose by 12.7pc from 15m to £16.9m.

The report said trading conditions were particularly tough for the group owing to its concentration of northern metropolitan titles, which include the Liverpool Echo, Manchester Evening News and Newcastle Evening Chronicle.

“Our regionals division has seen challenging trading conditions in our key large northern metropolitan markets which are feeling the brunt of the tough economic conditions and in addition the public sector spending cuts and continuing media fragmentation,” it said.

“Our regional titles continue to perform in line with market trends despite our portfolio being in the currently more economically challenged large northern metropolitan markets.”

Advertising revenues over the six-month period were down 12.1pc to £87.7m while circulation revenues fell 3.9pc to £31.9m.

By category, display advertising revenues fell 9.9pc, recruitment 13.2pc, property 10.8pc, motors 24.5pc and other classified categories 13.2pc.

Growth in other revenue areas was however driven by increased revenue from digital marketing services and contract publishing for football clubs.

The figures for the regional division now include only Trinity’s English and Welsh titles.  The rebranded Scottish operation, Media Scotland, is now part of the nationals division.

Today’s report said that the group’s national titles had maintained their market share in the period, with improved trading in June benefiting from the Diamond Jubilee and the Euro 2012 football tournament.

It said the group’s ongoing focus on driving efficiencies and reducing the structural cost base of the business ensured that operating costs fell by £20.0 million.

Commenting on the group’s performance as a whole, new chairman David Grigson said:  “We increased the profitability of our core print assets and we are continuing to invest in the technology led transformation of our publishing capabilities and in new products and services across multiple digital channels.”

“Although the trading environment is expected to remain difficult, the Board anticipates that through strong operational management and the benefit of a fall in newsprint prices for the second half, we will deliver an outcome for 2012 which will be ahead of current expectations.”