Chrysalis Radio, which owns stations including London's Heart 106.2, has seen its ad revenues pick up this month after a six-month slide.

The commercial radio operator said its March revenues were expected to be up 2% year on year.

This followed a six-month period up to the end of February when Chrysalis Radio's ad revenues were down 9% year on year, the company said in a trading update today.

Chrysalis blamed the tough last six months' trading on a "challenging" UK radio advertising market.

However, Chrysalis said its prospects for the rest of 2007 were looking rosier, in part because it had been able to negotiate improved airtime deals with media buyers on the back of strong Rajar audience figures.

"Current trading is particularly good, with an encouraging level of forward bookings for the remainder of the year," the company added.

"This, together with the benefits of strong audience figures from quarter four 2006 Rajar survey (particularly for Heart 106.2 in London), recently agreed improved share deals with the major media buying agencies and easier comparables in the second half, gives us confidence that w can meet our target of a flat revenue performance for the full year."

Chrysalis said its review of strategic options for its radio business - which could lead to a sale - was making good progress.

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