Circulation at Ireland on Sunday has fallen by 9 per cent in the year ended October 2nd, the paper's owner Daily Mail and General Trust (DMGT) revealed yesterday.

The paper, which is owned by DMGT subsidiary Associated Newspapers, had been making strong circulation gains over recent years in Ireland, but this appears to have stopped,according to accounts released yesterday by the parent company.

The Daily Mail and the Mail on Sunday in the UK both increased their share of a declining market, state the accounts. The freesheet Metro UK was also a strong performer. The average circulation for the Evening Standard of London was up 12 per cent. However, the accounts acknowledge a slowdown in sales growth for Ireland on Sunday.

"Ireland on Sunday's circulation fell 9 per cent as we reined in promotional expenditure," the accounts say. The paper, which is a rival to several titles owned by Independent News and Media (IN&M), has long been associated with giving away free CDs and DVDs with each issue.

While Ireland on Sunday suffered from declining sales, DMGT's financial performance was relatively strong with operating profits up from £181 million (€265.4 million) to £207 million. However, the company is planning to sell its regional newspaper group, Northcliffe Newspapers.

The company's chief executive, Charles Sinclair, joined Rupert Murdoch yesterday in bemoaning the newspaper industry's "collective madness" in giving away free CDs and DVDs. Mr Sinclair said the tactic was failing to make any sustainable gains in circulation.

"These vast expenditures on CDs and DVDs, they're like injections of yippee beans - circulation suddenly goes up only to leave you in a thoroughly depressed state if you can't produce as good a CD this week as you did last week," Mr Sinclair told analysts.