UPDATE 1-UK broadcasters STV and UTV see ad decline slowing

* STV, UTV to pay no interim dividend

* STV H1 revenue down 26 pct, UTV down 10 pct

(Adds details on results, background, analyst comment)

LONDON, Aug 27 (Reuters) - British regional broadcasters STV (STVG.L) and UTV (UTV.L) said on Thursday they expected the rate of advertising revenue decline to slow, partly due to easier comparatives.

Scotland's STV said trading was in line with its expectations after first-half revenue fell 26 percent to 41.5 million pounds ($67.9 million), and Northern Ireland's UTV posted group turnover down 10 percent to 54.5 million pounds

"It is difficult to give a detailed outlook because of continuing macroeconomic uncertainty," UTV's Chief Executive John McCann said in a statement.

"Nonetheless we are expecting the rate of decline in advertising to slow as comparatives ease over the coming months," he added.

Both companies said they would pay no interim dividend and would review their dividend policy after 2009.

National commercial broadcaster ITV (ITV.L) said earlier this month it expected the rate of advertising decline to ease slightly in the second half of the year after a 15 percent fall in the first half.

British newspaper publishers Trinity Mirror (TNI.L) and Daily Mail & General Trust (DMGOa.L) have also recently reported a slower rate of decline in advertising sales.

STV said it continued to strictly manage costs after first-half operating profit halved, and was further developing programmes independently of ITV, with whom Britain's regionals have complex programming and ad sales relationships.

UTV said it expected the rate of sales decline in its British radio business to slow to 6 percent this quarter from 13 percent in the first half, although television revenue would likely fall 16 percent and Irish radio 20 percent.

Brokerage Numis reiterated its "buy" recommendation on UTV, saying it saw it as undervalued at 5 times earnings, compared with ITV's multiple of 100.

"We retain our view that both radio and television are attractive recovery plays, and view them as more structurally robust than other traditional B2C media," its analysts wrote. (Reporting by Georgina Prodhan; Editing by David Holmes) ($1=.6115 Pound)