The Republic's largest free advertising paper, Buy & Sell, has reported an almost 23 per cent rise in circulation despite the general slump in the advertising industry.
The paper which is owned by the publishers of the Daily Mail and Ireland on Sunday, Associated Newspapers, now has a weekly sale of 95,828 copies, according to new figures from the Audit Bureau of Circulations (ABC).
The ABC figures compare sales between July and December 2002 and the corresponding period in 2001.
The circulation figures are for the Republic and Northern Ireland.
The company that publishes the paper, B&S, reported pre-tax profits of €460,000 for the year ended December 2001 and yesterday managing director, Mr John Whelan, said for the first nine months of 2002 it had pre-tax profits of €851,417.
He said papers that carry advertising for free were "counter-cyclical" so that when the economy was experienced a downturn, consumers were more cost-conscious and the opportunity to place a free advert was very appealing.
Buy & Sell has seen off competition from several publishers over recent years, including businessman Mr Mike Hogan and Mr Ralph Ingersoll, a one-time investor in the Irish Press titles.
Since 2001 the paper, which effectively has little competition at present, has been owned by Associated Newspapers. It has a large staff of about 100 and three offices in Dublin, Belfast and Cork.
While private adverts are placed for free, businesses advertising their goods must pay a fee. However, Mr Whelan said the company made most of its money from the cover price, which stands at €2.
He said the brand had about 93 per cent recognition among adults and this had been achieved after many years of advertising and marketing of the title, including sponsorship of the Circuit of Ireland rally. He said the company was also a long standing advertiser on TV, but tended to avoid press campaigns.
"We believe if anyone else tries to launch they will have to realise there are high entry costs involved.
"Previous attempts have floundered with companies running out of money in the second half of the second year of operation," he said.
The magazine advertises all sorts of goods, including cars, holidays, DIY equipment, computers, video recorders and musical instruments, but it is estimated that up to 30 per cent of its business comes from car adverts.
Free advertising papers and similar ventures have been selling for large amounts in Britain and the company that previously owned Buy & Sell, Loot Group, was bought by Associated Newspapers two years ago for £40-£45 million sterling, (€56-€67 million) although Buy & Sell was not the only asset involved.
