Trinity Mirror has today warned that the "volatility" in the advertising market could continue in 2008, as it said that advertising revenues in the 11 months to November had increased marginally.

The newspaper group, which owns the Daily Mirror, said in a trading update for 2007 that group advertising revenues for the five months to November, excluding the businesses sold and including all acquisitions, increased by 2.1 per cent year-on-year on a like-for-like basis.

In the first half, the group reported a decline of 1.5 per cent, resulting in a 0.1 per cent increase for the 11 months to November.

Breaking down the advertising revenues by division, the nationals division reported advertising revenues for the period up 5.6 per cent versus a fall of 2.3 per cent for the first half, while the regionals unit saw advertising revenues rise 0.6 per cent against a 1 per cent drop in the first six months.

Trinity said that digital revenues for the 5 months to November have increased by 33.3 per cent, with an rise of 27 per cent at the regionals division and 98.5 per cent at the nationals.

By advertising category, display was up 4.6 per cent, recruitment was down 1 per cent, property rose 2.8 per cent, motors declined 13.8 per cent and other classified categories were up 1.3 per cent.

It added that circulation revenues across the titles have grown by 0.7 per cent year-on-year maintaining the 0.7 per cent growth seen in the first half.

Trinity also said that it had applied for clearance from the Pensions Regulator for the return of capital to shareholders. It expects to conclude these discussions before the end of the year.

Results for the 52 weeks ending 30 December are expected to be published on 28 February 2008. This morning's news caused the group's shares to fall 3p to 343p in early trading.

Trinity Mirror has shed assets to focus on its national titles, some regional newspapers and digital operations as declining advertising sales have impacted the publisher. On October 1, the company said that it agreed to sell its sports division, including the Racing Post newspaper, for £170 million.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive