Smurfit Communications, the largest magazine publisher in the State, said yesterday it was broadly pleased with the latest half-year circulation figures.

The company, which is currently the subject of an MBO led by managing director Ms Norah Casey, publishes several leading titles.

The figures, from the Audit Bureau of Circulations (ABC), show the company's flagship title, U magazine, falling from 44,227 to 42,868, a 3 per cent drop in the period from January to June 2004 compared with the same period in 2003.

Ms Casey said a cover price rise in first half of 2004 caused a small dip in sales. She said the magazine was performing well in the competitive market.

Circulation for Woman's Way was down from 31,781 to 29,167 in the period from January to June 2004.

Ms Casey said about 8,000 copies of the magazine were sold slightly below cover price during the period as part of a promotion.

Another Smurfit title, Irish Tatler, posted a strong circulation increase in the period between January and June 2004, up from 17,758 to 21,605. Ms Casey said she was happy with the results and the company was on schedule to complete the MBO.

Meanwhile, circulation for Hot Press dropped slightly, from 19,172 to 18,631. A spokesman for the magazine, Mr Dwan Stokes, said the publishers were happy with the results and that activity in the music business, including a new U2 album, would drive sales in the second half of the year.

He said the magazine sold a certain portion of its circulation at below cover price in the period, but this was part of its usual promotional activities at concerts, in colleges and other youth-orientated venues.

Business & Finance reported a circulation of 9,827. Publisher Mr Ian Hyland said this made the publication Ireland's largest business magazine.