Independent News & Media said today that advertising revenue is stabilising and that it expects its total revenues in constant currency terms to be down 14% compared with 2008.

In a trading statement to the stock exchange, INM said group operating profit before exceptional items is estimated to be about 37% behind last year compared to 44.8% in the first half of the year.

INM said:

• Group advertising revenue is down by approx. 19%; and
• Group circulation revenue is down by approx. 2%.

This marginally improved year-to-date revenue performance compared to the trend for the 1st half of 2009 "demonstrates a stabilising advertising revenue trend, with each region experiencing similar advertising trends to H1 2009."

INM said based on still limited visibility, the advertising trends experienced in September and October remain challenging and are expected to continue for the remainder of 2009. As a result, assuming a continuation of these trends and seasonal factors, the full year operating profit before exceptionals forecast for 2009 is expected to be in the range €170 million to €190 million.

It said with economic fundamentals expected to recover over the medium term, INM’s "market-leading assets are very well positioned to benefit from any cyclical economic recovery. The Group’s strong operating leverage, as a result of significant operating cost reductions over the past two years and continuing business process improvements, should facilitate incremental revenue growth substantially translating into a much improved operating profit performance as markets improve."