Independent News & Media has reported a 7.1% increase in advertising revenues at its UK operations in the first half of the year.

The group, which owns the Independent, Independent on Sunday and Belfast Telegraph, also reported a 2.3% rise in overall revenues.

The Belfast Telegraph provides the biggest contribution to the UK division's bottom line, while The Independent and Independent on Sunday have yet to turn a pre-tax profit.

INM said advertising had been boosted by display revenue growth at the Independent and classified advertising growth, particularly in Northern Ireland.

Last year's acquisition of PropertyNews.com, the largest website in Northern Ireland, had also boosted revenue.

The company said operating profits in the UK had grown by 19.7% to €7.3m (£5.1m) for the first six months of 2007.

Both Independent titles had "performed well relative to their competition", the company added, pointing to a 1.3% fall in circulation at the daily title and a 0.6% sales growth at its Sunday stablemate.

INM also reported a "significant" increase in online revenues, with "particularly good growth" for its flagship www.independent.co.uk site.

Overall, the Dublin-based group - which also has operations in Ireland, South Africa, Australia, New Zealand and India - reported a 2.4% rise in first-half revenues to €815.5m (£567.1m).

The group incurred a net exceptional charge of €27.6m (£19.2m) relating mainly to payroll restructuring charges in the UK, Ireland and Australasia.

The full cost of this restructuring programme over the course of 2007 is expected to be approximately €45m (£31.3m).

So far the company has axed more than 450 posts out of the 579 reductions forecast for this year in the UK, Ireland and Australasia.

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