Johnston Press profits fall but group builds strong platform for year ahead

YORKSHIRE Post publisher Johnston Press said full-year profit more than halved on lower advertising revenue, and added that the challenging trading environment seen in the second half of 2012 had continued into the start of this year. The company said it has continued to reduce its workforce, with the number of staff employed by the group falling to just over 4,350 at the end of December, down 23.1 per cent from 2011.

Total advertising revenue for the first 10 weeks of 2013 was 15.6 per cent below the same period in the prior year, Johnston Press said.

Pre-tax profit fell to £12.6m on an underlying basis in the year ended December 29, from £28.4m a year earlier. Revenue fell 12 per cent to £328.7m.

The group, which publishes 13 daily newspapers and more than 230 weeklies, said advertising revenue declined 12.7 per cent to £201.9m.

Johnston Press added average daily audience grew 29.3 per cent and monthly digital audience 21 per cent year-on-year to more than 10m unique users, resulting in an aggregate print and digital audience growth of more than 5 per cent.

Ashley Highfield, chief executive, said: “Good progress has been made in the process of transforming the group in 2012 and the changes made provide a strong platform for us to build on in 2013 as we invest in refreshing our print portfolio, and simultaneously move our operation to be real-time, digitally led, social, mobile and ever more local.

“The economic environment remains challenging, but with the steps we have taken to improve the effectiveness of the business, to accelerate the growth of our digital revenues, and to continue to manage our costs tightly, we believe we are well positioned to deliver a strong operating performance in 2013.

“The ongoing development of our trusted local newspaper brands across print and digital remains key to us doing this.”