Highfield confident despite revenue drop at Johnston Press

JOHNSTON Press, the publisher of titles including the Yorkshire Post and Halifax Courier, has seen print and digital advertising revenues drop by 14% on a like for like basis over the last 18 weeks.

However, chief executive Ashley Highfield said the second half of the year to date had witnessed an acceleration in the implementation of the group’s strategy for the business, which includes a shift towards digital publishing and some daily titles going weekly.

Commenting on the 18 weeks to November 3, Mr Highfield said: “While market conditions have been even tougher than expected, we have made good progress in restructuring our operations, reducing the cost base, maintaining focus on debt reduction and continuing to invest in growth areas. 

“We have moved forward with the re-launch of our titles with encouraging early signs, and our digital business has seen a huge increase in audience this year, as well as the launch of services across iPad, mobile and PC, which will provide a spring-board to future digital revenue growth.

“As a result, the business is moving onto a more stable footing as we go into 2013 when the full benefits of the changes will be seen.”

Like for like total revenues were down 11.4% year on year, with circulation revenues down 0.5% and total print and digital advertising revenues down 14%.

The figures include the impact of moving a number of titles from daily to weekly, the closure of titles, and changes to contract printing operations.
 
Mr Highfield said JP, which is moving the Yorkshire Post, Yorkshire Evening Post and parts of the Wakefield Express to a new base this week, expected cost savings for the full year to be around £30m, a £5m increase on the previous estimate.

He said digital audience growth across its network of websites had “continued apace”, with monthly website visitors for October showing a 25.2% year on year increase to 9.8m. Net debt has fallen from £351.7m at the start of the year to £336m as at the end of October.

In a statement, the group added: “Provided that the trading environment does not deteriorate further, with continued achievement of the identified cost savings, increased circulation revenues during Q4 and a growing digital business, we expect full year operating profit performance for 2012 to be broadly in line with current market expectations.”

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