Daily Mail and General Trust (DMGT), the newspaper and information publisher, warned investors yesterday that advertising revenues at its regional newspapers were deteriorating month by month as the economy slows.

The publisher, announcing interim results, admitted that advertising revenues at its UK regional titles, including newspapers in Hull and Bristol, were looking worse this month than they had been in March and April - when they tumbled 6.7 per cent.

Peter Williams, finance director of DMGT, said he had “only seen two weeks' results from May”, but added: “The property market looks like it is in recession. Property advertising is now in double-digit decline after a 9 per cent fall over Easter.”

The gloomy near-term outlook for the regionals pushed the shares down 14p to 392p, levels not seen since 1997. They later closed at 400p. Mr Williams said poor economic conditions were being exacerbated by a migration to online classified websites, including Google and some owned by DMGT, such as Jobsite and Findaproperty.

None of the regional press weakness 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 demand for colour advertising. Mr Williams added that after a weak April, national newspaper advertising has risen.

Profits at Associated Newspapers, the division that 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 - a little over 1 per cent of the £242 million generated from advertisers in the half year to March 30.

Group pre-tax profits, affected by write-offs and a currency charge, were £22.6 million, down from last year's £132.8 million.

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