Newspaper publisher Trinity Mirror – parent of The Birmingham Post – yesterday said operating profits were set to come in 10 per cent lower than market hopes.

The group, publisher of the Daily Mirror, said advertising revenues were suffering a “marked” decline.

Trinity Mirror shares lost more than a quarter of their value on the profits gloom. The firm blamed economic uncertainty and the credit crunch for its advertising woes.

It revealed that underlying group revenues fell 7.8 per cent in the nine weeks to June 29, with underlying ad sales down 12.6 per cent.

Circulation revenues fell in the nine weeks, down 2.4 per cent.

Trinity Mirror said: “We have seen a marked year-on-year decline in advertising revenues across our businesses in May and June and this is expected to continue for the remainder of the year.”

The performance in May and June is expected to lead to an overall half-year drop of 4.5 per cent in underlying group revenues.

Trinity signalled advertising revenues in its regional and Scottish national businesses were expected to be worst hit – 7.5 per cent – compared to a 6.1 per cent expected fall in UK nationals.

Within the regional ad sales decline, property and motors ads are predicted to be hardest hit with expected falls of around 17 and 17.5 per cent respectively for the 26 weeks to June 29. Digital sales, however, continue to increase, up around 24.4 per cent on an underlying basis in the past 26 weeks.

Trinity Mirror said it would seek to cut costs where possible to help offset the ad sales slump.