UK-based Johnston Press blames advertising for profit drop

UK regional newspaper publisher Johnston Press today blamed a “sustained downturn” in advertising revenues for a 3% drop in half-year profits.

The group, which owns the Yorkshire Post and the Sunderland Echo, saw like-for-like advertising revenues fall 8.8% and warned it did not anticipate an early recovery.

It meant pre-tax profits for the six months to June 30 came in at £79.8m (€118m), down from £82.2m (€121.7m) during the same period last year.

Johnston felt the pinch in recruitment ads, which it said reflected a tighter employment market and efforts by both the public and private sector to cut costs.

Motor ads were also dented, although it said there was growth in property advertising. Overall, like-for-like print ad revenues fell 9.2%, although digital was up 13.4%.