Trinity Mirror's profits dipped by 12.8 per cent due to the weak advertising market for the 26 weeks ending 2 July.
Pre-tax profits stood at £98.1m compared to £112.5 in the same period last year with revenues down 2.2 per cent to £566.6m.
Chief executive Sly Bailey said in her statement: "Our results should be viewed in the context of a weak advertising environment with falling GDP growth, sluggish consumer spending and rising unemployment.
"These market conditions are impacting all advertising categories with the exception of property advertising, where we continue to achieve marginal growth despite very tough comparables for 2005."
Bailey added: "While circulation volumes for our regional newspapers remain challenging, revenues continue to increase.
"The exceptions are our titles in the midlands. The new management team appointed to the Midlands in 2005 is starting to make inroads into improving performance."
The company, which owns the Daily Mirror and is the biggest newspaper publisher in the country, said it is on track to make savings of £15m having already saved £9m this year.