News Group Newspapers (NGN), which publishes The Sun and The News of the World, has reported a 10 per cent drop in pre-tax profit to £40.3m.
It however managed to attract more adverts by investing in colour-printing capacity and managed to bring down its operating loss by 16 per cent to £15.5m.
The two newspapers benefited from a series of print ad campaigns from some of the biggest national supermarkets and DIY promotions, said a company spokesman.
Times Newspapers, which publishes The Times and The Sunday Times, reported a 60 per cent increase in operating losses to £72m for the same period.
The combined turnover of the two newspapers dropped by £60m to £385.5m due to a fall in ad revenues.