According to Johnston, which owns papers including the Peterborough Evening Telegraph and the Falkirk Herald, like-for-like advertising revenues were 2% higher than for the same period in 2001.
The group said it anticipated "modest revenue growth" for 2002, and that the board has confidence about prospects for the rest of the year.
Shares in Johnston rose by 5p, or 1.3%, this morning to trade at 400p.
The news in the local ad market contrasts with that of the national newspapers, which are still struggling. Johnston said that property and display advertising were the main drivers of the growth.
In the statement, Johnston said it expected an exceptional charge of £3m when it posts its interim results in August, as a result of reorganising the company.
Circulation for the company's weekly titles was growing. However, evening titles saw a small decline.
Earlier this year, Johnston Press called off a deal with the Trinity Mirror Group, after the Competition Commission ruled that the sale of four of the eight titles it wanted to buy would not be permitted on the grounds it would create a monopoly.
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