Johnston Press cuts costs as ad revenues fall

by Emma Barnett, Media Week 27-Aug-08, 10:30

LONDON - Johnston Press' advertising revenues are down 21.0% year on year in the first seven weeks of the second half of the year, according to its interim report.

The Regional newspaper group has seen advertising revenues drop 9.5% during the first half of 2008, compared with the same period the previous year.

Total revenue fell 6.3% to £293m for the first six months of 2008, year on year, while operating profit fell 15.6% to £81.6m. Digital revenues grew by 52.1%.

The company said it has cut costs by £7.6m in the first half and will continue to actively do so.

Johnston Press chief executive, Tim Bowdler said: "Advertising trends have continued to deteriorate over the course of the year, and future performance will inevitably be linked to the economies of the UK and to a lesser extent that of the Republic of Ireland."

He added: "In response to the current challenging circumstances, we continue to actively manage our cost base to achieve productivity gains and in a manner which will protect the long term prospects of the group. We expect to deliver a result reflective of these initiatives and the difficult market conditions."

Johnston Press publishes 18 daily and 300 weekly local UK newspapers including The Scotsman and the Yorkshire Evening Post.