Indian newspaper publisher HT Media expects ad revenue to flow in the first quarter, prior to the general elections. It will, however, cut the number of pages in order to slash costs, Reuters reported.

The company reported a nearly 80 percent drop in net profit to 78 million rupees, and 3.4 billion rupees in revenue in the last quarter of 2008. Margins were impacted due to increasing newsprint cost and ad revenue declines, according to Chief Executive Officer Rajiv Verma.

"Revenue volume for display advertisements fell by about 25 percent in the third quarter," Verma said in a conference call, according to Reuters.

Lower newsprint prices overseas are expected to impact the market in the fiscal year 2010, as its current inventory of about 39,000 tonnes was enough till May, according Verma, Reuters reported.

HT Media is the publisher of the Hindustan Times and Mint, which has most of its newsprint imported.

Verma said the newsprint prices are going to drop from currently US$710 per tonne to $600 in a couple of quarters, Reuters reported.