Revenue at Independent News and Media to date is trailing 2011 trends, the group said today, with both advertising and circulation revenue falling year on year.

But the group reported its digital revenues were performing strongly and said it had cut costs.

Total group revenue in constant currency terms was down 3.5 per cent year on year, or 5.2 per cent in euro terms. Total circulation revenue for the 19 weeks ended May 11th fell by 3 per cent, with advertising revenue for both print and digital falling by 5.3 per cent.

However, within the ad sector, digital revenue rose by 17.6 per cent overall.

“Trading patterns were somewhat disrupted around the Easter period but now appear to be returning to more normal trends, with some stronger advertising weeks interspersed among weaker ones,” INM said in a statement.

The group cut its operating costs by 1.4 per cent in constant currency terms compared with the same period last year.

“Cost savings were delivered across all operations which more than offset inflationary cost pressure in South Africa and significant energy price increases,” INM said.

Net debt for the group is currently €420 million.

INM reiterated its previous view that the current climate made forecasting “very difficult”, and noted that advertising conditions remained “challenging and erratic”.

The group has seen some upheaval in recent weeks, with group chief executive Gavin O’Reilly stepping down last month to be replaced by Vincent Crowley. The group has also found itself in court following non-executive director Paul Connolly's challenge to the €1.87 million paid to the former CEO on his departure.