Johnston buoyed by strong advertising revenues

British regional newspaper publisher Johnston Press today reported above-expectations growth in advertising revenues for the first six months of 2004.

Johnston said it had seen like-for-like and actual growth of 6% in the half-year period, which extended across all categories of advertising.

The increase helped the Edinburgh-based business, which dates back to the 1760s, to boost half-yearly pre-tax profits by 16% to £77.3m (€114.9m).

Employment advertising was the strongest growth area, up by 13.3%, while property advertising also continued to perform well.

Johnston, which publishes titles including the Lancashire Evening Post and The News in Portsmouth, cautioned that growth would slow in the second half as the equivalent period last year was particularly strong.

But it nevertheless pleased investors by lifting the interim dividend to 2.4p from 2p, which resulted in shares rising more than 2% or 11p to 524p.

Chief executive Tim Bowdler said the first six months had been good and the group had started the second half well.

“Newsprint prices remain stable and the group continues to maintain a tight control of costs, giving the board confidence about the prospects for the remainder of 2004,” he said.