Newspaper group Trinity Mirror cut its dividend today as the group warned advertising had fallen around 30% in the first two months of this year.

The group, which owns the Daily Mirror and more than 140 regional newspapers, reported a 22% fall in operating profit in 2008 to £145.2m, down from £186.4m the previous year.

Revenues from retained businesses fell 6.5% to £871.7m, down from £932.3m.

The group said it was not paying shareholders their dividend for 2008 because of the "challenging trading environment" and would not do so again until trading improved.

Shareholders will have to make do with the 3.2p per share interim dividend they received in October, a fraction of the total of 21.9p per share awarded in 2007.

The company warned that the economy would remain "difficult and uncertain" during this year.

In January and February, advertising revenues had fallen 30%, with the regional division recording a 37% decline and the national titles dropping 16%.

Circulation revenues had fallen just 4% in the same period, the company said.

"Advertising revenues are expected to decline throughout 2009, though we expect only minimal falls in our more resilient circulation revenues," the company said in a statement.

"We will incur a double-digit increase in newsprint prices which we will look to offset through a reduction in consumption.

"In this environment, the company will continue to take prudent and measured actions to steer the business through the ongoing downturn, focusing on delivering quality products to its customers, tightly managing its portfolio of strong brands and driving cash flow from the business.

"Our proven track record of delivering substantial cost savings provides the board with comfort that management actions will help to support profitability in a challenging outlook for the economy."

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