Johnston Press expects print ad weakness

by Jacquie Bowser, Brand Republic 05-Mar-08, 11:15

LONDON - Johnston Press has warned of a weaker print ad market in 2008 as it revealed a 5.2% drop in pre-tax profits to £124.7m for 2007.

The company reported total revenues were up 0.9% on 2006 to £608m, driven by revenues from acquisitions in the year, digital revenues and contract print sales.

Earnings per share, on an underlying basis, slipped to 34.15p in 2007 from 36.66p in 2006.

Print advertising revenue fell 2.1% to £401m in 2007; but digital ad revenues continue to climb and jumped up 34% on 2006 to £15.1m

Roger Parry, chairman of Johnston Press, said the company was happy with exceeding city analysts expectations "in what was a very difficult trading year for all local media companies". However, he warned of a weaker print ad market in 2008.

He said: "In the early weeks of 2008, print advertising revenues were down on the same period in 2007 and have been volatile week to week. Economic growth in the UK and Ireland for 2008 is expected to be slower than that achieved last year.

"Although we expect continued strong growth from our digital activities, the main factor influencing 2008 is expected to be a continued general lack of confidence which suggests that advertising markets will remain challenging."