Profit and revenue fell at Independent News & Media in the first half of the year, despite cutting costs and paying back debt, after advertising and consumer markets remained "remarkably tough".

The Dublin-based group said operating profit before exceptionals fell 6.3 per cent in the six-month period to €34.5 million, while total revenues fell by 12.3 per cent year-on-year to €284.6 million as the disposal of the London Independent titles weighed.

Underlying group revenue fell by 5 per cent.

The group cited weak domestic demand and poor trading conditions, particularly in Ireland, for the decline.

"Trading conditions, particularly in Ireland, remained very difficult and a significant increase in exports failed to translate into domestic demand," the statement said.

"While exports continue to grow in Ireland, consumer uncertainty about the impact of austerity measures, taxes and the euro zone debt crisis has led to a substantial increase in the rate of personal savings in Ireland."

Underlying advertising revenue was down by 7.3 per cent year-on-year, and circulation revenues dipped by 2.1 per cent.

"General advertising conditions still remain tough and volatile. Visibility has not improved since our AGM in June and continuing uncertainty over the response to the euro zone debt crisis continues to constrain advertising and consumer spending," chief executive Gavin O'Reilly said in a statement.

"As a result, we are not anticipating any material advertising uplift or normalisation in advertising conditions before the year-end."

The group said it was targeting full-year operating profit in the range of €78 million to €83 million.

INM chief financial officer Donal Buggy said he expected advertising to fall by 4 per cent for the year as a whole.

Mr Buggy added the group would be targeting a similar debt pay-down in the second half as the first, when it reduced its debt pile by €21.5 million to €452.1 million.

Additional reporting: Reuters