Trinity Mirrror has seen a decline in its revenue for regional newspapers as its digital sector grows.

An interim management statement published today for the 17 weeks of trading to 29 April shows a total fall in revenue for its regional sector of seven per cent, while digital revenues increased by seven per cent.

Display advertising fell by 11pc in regionals and classified fell by 13pc with recruitment falling by 12pc.

Property fell by 10pc, motors by 24pc and other classified by 13pc. Circulation revenues fell by 4pc with ‘minimal cover price increases partially mitigating volume declines.’

Other revenues increased by 12pc reflecting ‘increased contract print revenues’ and the inclusion of specialist digital communications company Communicator Corp, purchased by the company in January.

The company predicts a decline on 5pc in revenue for May with advertising revenues falling by 10pc, circulation revenues falling by 4pc and other revenues increasing by 10pc. Digital revenues are expected to increase ahead of the growth achieved in the period.

The statement says that the trading environment is expected to remain challenging for the remainder of the year with month on month volatility in revenue trends but the benefit of focused management of the business coupled with delivery of at least £15 million of structural cost savings will support profitability during 2012.

In a statement the company said: “Strong cash flows enabled net debt reduction of £24 million to £197 million during the period and we anticipate a further decline in net debt for the remainder of the year.

“We anticipate repaying the £70 million of US Private Placement loan notes maturing in June 2012 through a combination of cash balances held at the period end, further cash generated during May and June and a drawing on the Group’s existing bank facility.”