The improved results were achieved by a significant cost-cutting exercise over the past three years and continued focus on growing the commercial side of the business.

Turnover grew by 6% to 11.8m on the back of revenue increases from circulation and advertising.

Chairman Gordon Colleary said that the Sunday newspaper market in Ireland continued to be one of the most competitive media environments in the world, with up to 20 titles competing for readers each week.

He said that, despite the competition, he expected further progress and a return to operating profit in 2007.

"We've fought for our share with the professionalism of our journalists, " he said.

"Under the direction of editor Noirin Hegarty we have successfully reconnected with our readers while securing the Tribune's place as a quality Sunday newspaper."