Regional newspaper publisher Johnston Press is continuing to see “no discernible improvement” in the advertising market, a group trading update has said.

Like-for-like print advertising revenues fell by eight per cent for the five months to November 30, although fast growing digital revenues meant overall advertising revenues were down by 7.4 per cent.

The group said the fall in employment revenues, which was 24.2 per cent in the first half of this year, has reduced to 12.2 per cent, but this reflected easier comparatives from the second half of 2005.

Motors advertising has continued to experience double digit declines due to “difficult market conditions and industry restructuring”, and Johnston Press said the retail sector also continued to be challenging.

The trading update said: “The one category still experiencing growth is property advertising, albeit at a slower rate as the comparatives get tougher.”

Newspaper sales revenue continued to grow for the group on a like-for-like basis, with circulation declines offset by increased cover prices.

And the group also saw digital revenue grow, with services such as CV matching and online Local Business Directories proving popular with advertisers – and as a result Johnston Press said it planned to invest more in this area.

Last year the regional publisher bought Score Press, Local Press Limited, The Leinster Leader Limited and Scotsman Publications.

The update added: “The integration of last year’s acquisitions continues to progress well and all are on track to meet our expectations as well as being earnings enhancing in calendar year 2006.

“The new printing facility at Dinnington, near Sheffield, is ramping up volumes ahead of anticipated levels, which has allowed the Group to close an existing press at Hartlepool which was not part of our original plan.

“Together with the closure of two ageing presses in Northern Ireland, this will result in the non-recurring costs for the year being nearer to £6m rather than the anticipated £4m.

“Looking forward, the Board does not see any early indication of improvements in advertising markets other than those coming from easier comparatives.

“However, 2007 will benefit from the News International contract running on the new press in Dinnington and this, together with the ongoing contribution from recent acquisitions and continued efficiency improvements, should help to mitigate the impact of any continued weakness in advertising demand.”