Bath-based publisher Future said it has passed an "important milestone" as its expansion into digital markets continues to gather pace.

The firm announced yesterday that its UK digital circulation and advertising revenues in the three months to December 31 offset a decline in print-related revenue.

In an interim management statement, new chief executive Mark Wood said: "We are starting to see a significant change in the shape of the business as our digital innovation enables us to reach entirely new consumers in global digital markets.

"The period has confirmed Future's position as a recognised leader in the transition to digital publishing."

The company, which employs more than 600 people in Bath, said trading had been in line with expectations.

While total group revenue was down seven per cent, digital revenues rose 41 per cent.

In its UK operations, the pace of digital growth was sharper still, with revenues growing 51 per cent.

In the US, revenues dipped 20 per cent because of year-on-year reductions in print revenues and the "managed closure" of a number of titles.

But Future's statement struck a note of optimism about the prospects for its US business and it expects digital revenues to grow as a result of more people owning tablet PCs and mobile devices.