The Irish Independent has seen a sales uplift of 14 per cent in areas where it is being sold as a tabloid, or "compact" edition, according to Mr Vincent Crowley, chief executive of Independent News & Media's Irish division.

Mr Crowley said it was still "early days" for the tabloid version of the newspaper in the Republic.

However, he indicated that take-up was high in Dublin and weaker in rural areas.

The compact was introduced in the Republic at the start of February and is currently available in Leinster and Munster. It will be on sale throughout the country later this year. "When we do the national roll-out, we'll have a better idea of where it will settle," said Mr Crowley.

Independent News & Media took an exceptional charge of €9 million last year in relation to the development and launch of a compact edition of the London Independent in Britain at the end of September.

The group's chief executive, Mr Gavin O'Reilly, said the compact now accounted for three-quarters of sales in Britain, with sales up by 25 per cent where it is sold.

The group expects this to spur a 50 per cent reduction in losses at the London Independent this year.

The paper lost some £9 million in 2003 as the advertising markets declined.

Mr O'Reilly acknowledged that the increase in sales of the compact had yet to be reflected in advertising revenues but he said this was "what you would expect in a lacklustre advertising market".

He said the firm was having "full and frank" discussions with its advertisers with a view to raising rates on the compact to reflect its circulation.'