Trinity Mirror, owner of the Daily Mirror, is to cut its costs by another £20 million next year after reporting an 8 per cent drop in first-half sales and a 15 per cent decline in July advertising revenue.

The newspaper publisher, whose market capitalisation has fallen by 83 per cent in the past year, added that cost-cutting had helped it to narrow its loss before tax to £20.6 million from £70.4 million. First-half sales fell to £460.8 million from £500.5 million. Net cost savings in 2008 reached at least £20 million, the same amount targeted for 2009.

Sly Bailey, the chief executive, said yesterday: “I don't think there is a single chief executive of a media company who has not seen a dramatic decline in the company's share price. We are always looking for efficiences. Sometimes that means headcount.”

In a statement, the group said: “The outlook for the UK economy remains uncertain ... [and] we remain cautious about trading prospects.” Ms Bailey said that the differing characteristics of regional and national newspapers will provide some resilience.

Regional advertising revenues had declined by 3 per cent in January and February, 3.3 per cent in March and April, and 11.3 per cent in May and June. National advertising revenues fell by 3.5 per cent in January and February, 2.4 per cent in March and April, and 13.2 per cent in May and June.

The group said that net debt at £424 million was up £176 million, reflecting £102 million paid out on share buybacks, £68 million funding payments to pension schemes, and £40 million for the 2007 final dividend.

Trinity Mirror said that its pension deficit had increased from £124.8 million to £145.2 million. After a meeting with trustees, the company said that it was not expecting any increase in fund contributions in the coming years.

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