The Week: City News - SMG's ad revenue warning

The Scottish media company SMG said it expected ad revenues to fall by 7 per cent in the first half of 2007.

In a statement at the company's annual general meeting, the company, which owns the STV and Grampian ITV franchises, said this decline was better than the 9 per cent reported across the ITV network as a whole.

SMG also reported an 8 per cent revenue growth at Virgin Radio, which it is planning to float.

The cinema subsidiary Pearl & Dean, which is up for sale, is expected to see a 7 per cent growth, while the outdoor division Primesight has increased revenues by 8 per cent.