Daily Mail and General Trust, the newspaper and information publisher, warned this morning that revenues at its regional newspapers were tumbling after a weak Easter period.

The publisher, announcing interim results, admitted that advertising revenues at its UK regional titles, including newspapers in Hull and Bristol, were down 6.7 per cent in March and April and that in May there were "worsening trends" from the negative figures.

The group said: "It seems that economic conditions in the UK will be tough in the second half and this is having an impact on our local media operation."

The gloomy data indicates that an acceleration in the pace of the economic downturn hit other parts of the group's business, including its US gift show operation, where it had to write off £16 million of investment, reflecting reduced consumer spending.

Pre-tax profits In the half year to March 30 totalled £22.6 million, down sharply from last year's £132.8 million because of the write-off and one-off currency charges, the last of which was offset by a reduced tax bill.

Operating profit at the group's UK regional titles fell 13 per cent to £33.8 million, although this was partly offset by better trading at the company's central European titles in markets such as Hungary and Slovakia. Northcliffe Media, the regional division, unveiled profits of £40 million, down 5 per cent.

None of the weakness at the regional press, reflecting downturns in local markets for jobs, property and car sales, was evident at the Daily Mail or the group's other national newspapers. Advertising revenues were 4 per cent ahead in the half year, showing an improvement each month. Display advertising, up 7 per cent, was particularly strong amid high demand by branded goods advertisers for colour advertising.

Profits at Associated Newspapers, the division which owns the Daily Mail, Mail on Sunday, and Evening Standard, were £44 million, down 4 per cent. Advertising revenues at the Daily Mail's website trebled to £4 million but amounted to a little over 1 per cent of the £242 million generated from advertisers in the half year.

There was income growth at the company's other electronic information business, while its Australian radio operations broke even in the half year, reversing a £2 million loss. Write-offs totalled £31.2 million, although £14.4 million was for technical reasons. The bulk of the remainder related to the group's gift shows in New York, Boston and Toronto, and reflected a "downturn in the gift sector markets they support".

The shares fell almost 4 per cent to 391p in early trading.

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