Mecom upbeat despite blow from ads and fall in profits

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That was Mecom chief executive David Montgomery's verdict after he reported a 28% drop in 2009 pre-tax profits to 125.5 million (£113.7 million) at his European media company, which publishes titles across Holland, Norway, Denmark and Poland.

Advertising plunged 18% last year but circulation revenues held steady.

Ad declines began to ease in the second half although Montgomery warned they had slipped by about 8% in the first two months of 2010.

He said: "I think we can feel optimistic [about 2010]. We have demonstrated the business is robust in a very difficult year."

Despite the former Mirror Group chief executive's upbeat outlook, Mecom shares fell 4.3% to 188.25p. Cost-cutting offset 75% of lost revenue and Mecom is seeing significant growth in online, particularly in Norway, where digital ad revenues have double-digit-growth.

Montgomery also said Mecom was keen to make use of the Apple iPad: "The iPad provides us with another route to market. We see it not as a threat but an opportunity."

Mecom has cut net debt to 373.4 million, almost half the size of a year earlier.

By 2012 the firm wants to have increased new revenues from non-print operations by 100 million (£90.5 million), from a base of 67 million (£60.6 million) last year, and cut net debt further.