Latest newspaper circulation figures from the Audit Bureau of Circulations highlight what a good deal the Townsend brothers, Niall and Michael, struck in extracting just shy of €25 million for the Sligo Champion from Independent News & Media at the turn of the year.

ABC figures published this week make for difficult reading for the Sligo title. Its average weekly circulation fell by 6.5 per cent year on year to 12,108 in the July to December period of 2007.

This compared with a circulation of 12,953 in the same period of 2006 and 12,574 between January and June of last year.

The average circulation actually dipped below 12,000 a week in the month of December.

There was bad news, too, for the Sligo Weekender, which is owned by Cork-based Thomas Crosbie Holdings and is the Champion's main rival locally.

The Weekender had an average weekly circulation of 7,904 between July and December, down 1.9 per cent on a year earlier.

The trend in Sligo was mirrored around the country as regional newspapers feel the effects of an increase in the number of free titles available and the internet grows in influence.

In terms of the price paid per copy, the sale of the Sligo Champion to Sir Anthony O'Reilly's INM was one of the most lucrative deals in the regional newspaper industry here.

It should also be remembered that the Townsends got to keep the property and the printing operation was excluded from the transaction.

It is understood that TCH and John Taylor's Alpha newspaper group, which owns regional titles North and South, just missed out to INM in the bidding stakes.

Buying the Sligo Champion undoubtedly bolstered INM's portfolio of regional titles, giving it a presence west of the Shannon.

The newspaper is also something of a cash cow, achieving a surplus of €2 million in 2006 on turnover of €3.8 million.

If the decline in circulation continues at the present rate, however, it surely won't be long before the profits dry up.