Johnston Press targets vouchers market

The group, which counts The Scotsman and Yorkshire Post among its publications, recorded pre-tax profits of £13.8 million in the 26 weeks to July 2, down from £26.1 million the previous year.

Johnston announced a digital partnership with Nimble Commerce, which will help it launch an online vouchers business in the autumn.

Britons are increasingly taking advantage of money-off vouchers, special deals and freebies in the face of the continued economic difficulties, research by the Halifax revealed earlier this month.

The move follows reports in the US, where the burgeoning appeal of discount vouchers has triggered a rise in newspaper sales and earned the craze the nickname “extreme couponing”.

Elsewhere, Johnston said its total revenues were down 7.5% to £191.8 million, including a 10% decline in advertising revenues to £111.3 million.

John Fry, Johnston chief executive, warned the company remained cautious about the advertising outlook for the second half of the year, as total ad revenues fell 8.1% in the first seven weeks.

He added: “The board has confidence that, in the absence of a further significant deterioration in the UK economy, the outcome for the group in 2011 will be broadly in line with current expectations.”

Johnston said it would use software developed by Nimble Commerce to develop its own online vouchers business.

It said it could source deals for local consumers through its “unique access to both local audiences and advertisers”.

A survey of 2,000 adults by Halifax Home Insurance found that nine out of 10 used vouchers or looked for deals, with almost half saying they looked for bargains more than they used to because money was tighter.

The company also signed a partnership deal with property website Zoopla.

Johnston said the public sector now represents 7.4% of print advertising, down from 10.1% in the first half of the year.

In addition, there has been a slowdown in private sector activity, with a 7.7% drop in property advertising and an 8.1% fall in motor ads.

Elsewhere, newspaper sales revenue was down 1.8% at £48.2 million, while digital revenues dropped 5% to £9.5 million.

Johnston shares were flat at 5.2p following today’s results announcement.

Lorna Tilbian, analyst at brokers Numis, downgraded its upper end forecasts for pre-tax profits to £27 million for the full year from £30 million.