From the Observer Media Diary: evidence of a print newspaper model that seems to be, wait for it, reducing its losses.

“City AM, London’s free financial paper, continues to confound the sceptics.

“It filed accounts for 2007 earlier this month, which revealed accumulated losses of just over £7m – but that reflects start-up costs, and sources close to the title say that, after several years of losing well over £2m, it will post a loss of just few hundred thousand pounds this year.

“Revenues are up 22 per cent and the title is on course to make money in 2009, at a time when more established titles are likely to plunge into the red.”