Irish advertising revenues for British newspaper group fall as profits return

ADVERTISING revenue in the Irish operations of British regional newspaper publisher, Johnston Press, fell 19.1% last year — even though the group, as a whole, returned to profit.

The Edinburgh-headquartered group, which owns 12 titles here that it has previously unsuccessfully attempted to sell, yesterday reported a pre-tax profit of £16.5 million (€19.2m) for 2010.

This is a significant reverse from the pre-tax loss of £113.8m generated in the previous year. Similarly, 2009’s operating loss of £90.6m was turned into a profit of £54.9m.

The group also generated earnings per share of 5.61p, last year, after seeing a loss per share of 13.66p a year earlier. Johnston’s full-year revenues, however, fell from £428m to just over £398m.

That revenue figure, however, marked a reduced decline and the results marked the first time in six years that Johnston Press managed to grow operating profits.

However, advertising revenue in both of its core geographical markets — of Britain and Ireland — fell. While its British operations suffered a 5.7% year-on-year ad revenue fall to £243.1m, the £11m revenue generated by its Irish division represented a 19.1% decline. Johnston also registered a one-off charge, of £4m, relating to the closure of its printing operations in Limerick during the year.

“We saw an improvement in the rate of decline in the Republic, but this is a result of the comparatives in 2009 being lower, rather than any improvement in the economic conditions in that market,” management said.

The group also said that it has made a weaker than anticipated start to 2011, given the inconsistency of economic growth.

However, chairman, Ian Russell, said: “Given the group’s historic strengths and presence in the many communities it serves, our opportunity now is to be innovative in growing revenues both from traditional and new sources and capitalising on the economic recovery when it gathers pace.”

The company has not recommended a dividend for shareholders.