Company chairman Gordon Colleary credited management and staff at the newspaper for the improved operating performance.

"Things had reached a critical point in 2004, " he said.

"I feel that, while we have some way to go to complete the turnaround, the management, staff, editors and reporters of the Tribune have accomplished a lot to be proud of in a year of changes.

"The restructuring plan has been successful, now the company will be focused on revenue growth."

The company significantly reduced its operating expenses, before redundancy payments, to 12.7m, down from 15.8m the previous year, cutting costs across the board and halving the headcount in management and administration, while increasing staff on the editorial side.

"There is a lot of goodwill towards the newspaper out there in the marketplace, " Colleary said.

"Despite a Sunday newspaper market that gets more competitive each week, we've held our own and done so on quality, not gimmicks and giveaways.

"We have a stronger readership among ABC1s and we think there's still room for growth.

"Our editor, Noirin Hegarty, is putting out a quality paper that has re-connected with readers . . . and that's the essential platform on which we can build."

The company will increase its focus on revenue growth while also seeking further cost efficiencies, Colleary added.