LONDON, Aug 25 (Reuters) - British newspaper publisher Trinity Mirror is considering turning one of its key regional dailies into a weekly as the recession continues to sap advertising budgets, it said on Tuesday.
Trinity Mirror said it had begun consulting with staff, advertisers and unions on the future of the Birmingham Post business daily and also on the Birmingham Mail, which may switch to morning from evening distribution to raise its circulation.
"It is clear that to safeguard the future of these businesses further action is required," the company said in a statement. "Further job losses are inevitable."
Trinity Mirror shares rose 6 percent to 127-1/4 pence by 1505 GMT, outperforming a 1 percent rise in the DJ Stoxx European media index.
The company said its Midlands division, which includes Britain's second city, Birmingham, was on track to make a loss of more than 6 million pounds ($9.8 million) in 2010, a figure that could have been worse without cuts already made.
Britain's privately owned Guardian Media Group is also considering options for some of its publications including national Sunday paper the Observer, which media reports have suggested may become a weekly magazine.
Trinity Mirror reported a 28 percent drop in first-half advertising revenue last month but said it expected a gradual improvement in the rate of decline during the second half.
Global newspaper ad spending has been falling from a peak of $131 billion in 2007 as readers move online and is forecast by leading media agency ZenithOptimedia to shrink by 15 percent this year. (Reporting by Georgina Prodhan; Editing by David Holmes) ($1=.6103 Pound)