Trinity Mirror's trading update for the 17 weeks to April 26 showed a 4% decline in circulation revenue and a 13% drop in digital revenue.
Its nationals division saw a 17% drop, while its regional division, which includes the Liverpool Echo and the Birmingham Post, was hit by a 36% decline in advertising revenue. This resulted in overall revenue being down by 18%.
However, the company said it expects to deliver positive cash flow from its operations in 2009.
Trinity's regional rival Johnston Press has been forced to shelve the attempted sale of its Republic of Ireland titles, including the Limerick Leader and Leinster Express after offers to buy were below the asking price.
Johnston said that with no money coming in from a sale it is likely to breach a financial covenant with its lenders this year. It is in talks to relax its covenants.
Shares in the company dropped 25.8% as of 9am to 23p, while Trinity Mirror escaped with just a 3% fall to 72.25p.
Johnston's net debt stood at £448m at the end of April, down £29m from the start of the year.
Johnston warned that the fall in ad revenues of 34.4% meant that operating profits for the year are likely to be towards the lower end of current market expectations, and that it is likely to make further writedowns of the value of its assets later in the year.
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