Johnston Press ad revenue falls by 8%

JOHNSTON Press has reported a slowing in advertising revenue declines since the halfway point of the year and has said that it is on course to realise cost savings of more than £20 million (€23.5m) for 2011.

The Edinburgh-headquartered regional newspaper publisher — which owns 28 titles in Ireland — said yesterday, via its latest trading update, that total advertising revenue is down by 8%, year-on-year, for the second half of 2011.

This figure compares to a 10% year-on-year decline in the first half of this year.

The decline in combined group-wide circulation revenues have also slowed down since the end of June. While a 1.8% decline was reported for the first half of 2011, the second half has seen a slight improvement, with a 1.6% year-on-year dip measured.

In yesterday’s statement, Johnston said that its net debt has been lowered from £386.7m to £357m in the year to date and that its ongoing cost savings drive should result in savings of over £20m in the current year.

“With the continued cost savings and the improved advertising declines, we expect full-year results for 2011 to be in line with current market expectations,” management added.

Those current market expectations are for group pre-tax profits (before exceptional items) of around £25m.

Johnston did not break down too much information on its individual operations in Britain or Ireland in the short trading update, but in August — when the company reported a tough set of first half figures (including a 47% year-on-year decline in pre-tax profit and a near 8% fall in revenues) it noted, about the Irish operations, that the economic environment “continues to be challenging”. That said, the rate of decline in its Irish advertising revenues fell from 29% to 18.2% in the first half.

Management added it “continues to be cautious” regarding the overall advertising outlook.