Mirror counts cost of fake pictures

THE Daily Mirror today revealed the extent of the damage done by the fake Iraq prisoner-of-war photographs that led to the sacking of Editor Piers Morgan last month.

Parent company Trinity Mirror said in a trading statement: 'While circulation revenues have increased, circulation volumes during May for the Daily Mirror have been disappointing.'

Morgan was sacked in mid-May but readers seem to have fallen away before that as the fake photos scandal took hold. Investors are already furious at suggestions the sacked editor may get a £1.5m pay-off.

New Editor Richard Wallace and chief executive Sly Bailey now have to convince backers that they can push the flagship's title back towards two million.

The Daily Mirror lost 40,000 readers in May, taking circulation down to 1.85m. The Sun's circulation rose slightly to 3.36m.

However, Trinity Mirror still expects the value of sales to rise, reflecting the increase in cover prices across the stable. In the half year just ending, it forecasts circulation revenues up by 6.6% on national papers and 3.9% on regional titles.

But for advertising revenues the boot is on the other foot with regionals showing 6% growth, with particularly strong performances from local websites. Trinity's national papers' advertising revenues are likely to have risen by

2.6% and the Scottish ones by 3%. Total ad revenues are up 5.1% and circulation revenues 6.2%.