Newspaper group, Independent News & Media (IN&M), has reported growing revenues in all its markets, although it acknowledged the UK advertising market remains weak.

The company yesterday issued a trading update for the 11 months to November 30 forecasting group revenues to rise by 7.5 per cent. Double digit advertising growth is expected in both Ireland and South Africa, while total circulation revenue is expected to up by more than 3 per cent, the company said.

Advertising growth in its Australasian operations is also strong, the company said, but the UK remained difficult.

"While the general UK market remains behind last year, as recently confirmed by other UK media companies, the group continues to out-perform the market."

The company said costs continued to be well managed globally despite the rising cost of European newsprint. A new bank facility should help to lower interest costs, the company explained.

The Indian newspaper group JPL, which IN&M has a 26 per cent stake in, intends to list on the Indian stock exchange early in the New Year.

The company said online revenues were now an important part of its operations, particularly classified advertising. Two internet portal sites were recently launched in Ireland and New Zealand aimed at mopping up online advertising revenue. The company retains its forecast of double digit earnings growth for 2005. Group chief executive Sir Anthony O'Reilly said the company was unique among newspaper and media companies in that it was showing positive underlying growth.

The company is facing competition in its home market from the UK's largest newspaper groups Daily Mail and General Trust. The Daily Mail is more than twice the size of IN&M and is hoping to launch an Irish version of the Daily Mail early next year.

A recent report by Goodbody Stockbrokers said this was one of the key threats to IN&M in the short term. About 40 per cent of the company earnings come from the Irish market.