Ad revenue declines slow to 19 per cent at Johnston
Thursday 12 November 2009
Johnston Press, which owns the Yorkshire Post and The Scotsman, yesterday backed the "greater stability" in its advertising revenues, as the declines slowed over the past 10 weeks.
The company was upbeat on the news that ad revenues had fallen by 19.1 per cent since September, an improvement from the 26.1 per cent decline in the previous two months.
"The greater stability in advertising revenues we referred to in the half year announcement has continued," the group said, "with improvements in the property market offsetting a continued decline in recruitment revenues." The first half saw the revenues fall a third from 2008 levels.
Johnston's shares rose 4.6 per cent to 28.5p as the group said it would hit profit targets for the year. It said that with the stabilising ad revenues, "reducing declines in circulation revenues and continued progress with cost savings, the group is confident of delivering an operating profit in line with current market expectations for 2009".
The comparison with the previous year's revenues is also easing as the ad market, which had slumped with the onset of the credit crunch, fell off a cliff after Lehman Brothers collapsed in September 2008.
Johnston has been slashing costs in a bid to offset the slump in ad revenues. It said: "In addition to the significant cost reductions made by the group in the second half of 2008 and the first half of 2009, we expect further progress to be made with a year-on-year reduction for the full year to be around £50m."
Johnston announced last month that it was to close two printing plants, one in Kilkenny the other in Edinburgh. The titles affected by the closure will be moved to other presses at the group or printing will be outsourced. The closures, which should see costs fall next year, will result in a £20m write-off for the value of the presses.
The costs from redundancy will also be higher than expected, the group admitted, with exceptional cash charges of £12m for the year. It added that while the business was cash generative it was unlikely to cut debts because of the writedowns and redundancy costs as well as £15m refinancing fees.
New UK station Russia Today gives a very bizarre view of Britain
By performing as African Americans or Indians, white people get to play act a kind of 'imaginary liberation', writes Michael Mark Cohen
Top Gear presenter is no stranger to foot-in-mouth controversy
New essay by JK Rowling went live on Pottermore site this morning
Review: Mike Leigh's biopic is a rambling, rich character study
- 1 'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 4 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
- 5 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
Halloween 2014: From the Screaming Man of Pluckley to the 'White Lady' of the Tower of London - Britain's 20 most haunted places
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...