THE ANNUAL loss recorded by the morning freesheet newspaper publisher Fortunegreen Ltd narrowed significantly last year to €630,458, latest accounts show.

This compared with a loss of €2.3 million in 2009 at the company, which publishes the daily Metro Herald freesheet in Dublin.

Fortunegreen is owned equally by The Irish Times Ltd, Independent News & Media (INM) and DMG Ireland Holdings Ltd, which publishes the Daily Mail.

Managing director Paul Crosbie said the newspaper was budgeting to reach breakeven this year.

“We’ve had a good first half of the year and are on budget,” he said. “If that continues in the second half of the year then we’re hoping to achieve a non-loss-making scenario.”

Mr Crosbie said the improved financial performance resulted from increased sales and tight cost management control. Metro Heraldhad been "self sufficient" since January 2010 following the merger of the then rival freesheet titles, Metroand Herald AM.

Metrohad been backed by The Irish Times Ltd and DMG, among others, while Herald AMwas owned by IN&M.

“There’s been good progress made since the merger and 2010 was a step in the right direction.” Mr Crosbie added that turnover rose last year by 10 per cent to €4.2 million and it has increased by 8 per cent in the year to date.

The abridged financial statements show that Fortunegreen closed 2010 with accumulated losses of €14.7 million. This compared with a deficit of €14.1 million at the end of 2009.

Fortunegreen’s accounts state that purchases from The Irish Times Ltd amounted to €647,220 during the year while sales to the company were €974. Purchases from companies related to DMG Ireland Holdings Ltd amounted to €722,893 while sales to those companies were €44,215.

Metro Herald’s average circulation for the past 12 months was 63,250.

Fortunegreen employs 23 staff.