Scottish Media Group saw a decline in TV ad revenue of 7% for the first half of 2007.

As with ITV's latest revenue fall of 9%, SMG saw a drop in interactive TV ad revenues but expects other areas of the business to offset the decline.

Virgin Radio, which SMG is planning to sell, is expecting an 8% rise in revenues with strong online growth.

Richard Findlay, the company's chairman, said of the trading update that it "views advertising markets for the remainder of the year with cautious optimism".

Recently appointed chief executive Rob Woodward is also due to provide details of a turnaround plan for the company by the end of June.