Regional newspaper company Johnston Press said underlying UK print advertising revenue has almost fully recovered from the weakness seen in the first half of the year.
However, the firm said its income turned negative in Ireland amid the weak property market.
Advertising revenue in Ireland was down 1.2%, compared with 10% growth in the first half.
Johnston Press owns the Leinster Leader group, the Leitrim Observer, the Kilkenny People and the Longford Leader and also has a number of interests in Northern Ireland.
The company said the downturn in its Irish fortunes was due to the recent slowdown in economy, which has hit the property market.
In an update ahead of annual results on 5 March, Johnston Press said it expects a satisfactory outcome for the year.
The company said it has to be cautious regarding prospects in 2008 given the recent turmoil in financial markets and the impact on the UK economy and consumer confidence.
