UPDATE 1-Daily Mail lifts prices as ad revenues drop

* First increase since April 2008

* 13-week newspaper advertising revenue down 7 pct

* Says outlook remains uncertain, sees easier comparatives (Adds details)

LONDON, July 14 - The publisher of Britain's Daily Mail will hike the cover price of the newspaper to 55 pence ($0.88) from 50 pence as it grapples with falling advertising revenues and rising costs.

"The continuing high cost of newsprint means it is necessary to increase the cover price of the newspaper," Daily Mail & General Trust (DMGOa.L) said in a statement, adding that it was the first increase in the price of the daily edition since April 2008.

The price of the Saturday and Sunday editions will stay the same.

The group said advertising revenues at its Associated Newspapers division had fallen 7 percent in the 13 weeks to July 3 when compared with a year earlier and that in June alone there had been a drop of 9 percent.

It made no mention of whether, as some analysts have predicted, the group expected to benefit from a phone hacking scandal at some of Rupert Murdoch's titles which has so far resulted in the closure of the News of the World and News Corp dropping its attempt to take full control of satellite broadcaster BSkyB .

"While the outlook remains uncertain, the July to September comparatives are less demanding," the group said. "The cover price increase will mitigate some of the impact of the recent decline in advertising revenues."

($1 = 0.624 British Pounds) (Reporting by Paul Hoskins; editing Sarah Young)