Bleak outlook from Oldham Chronicle publisher

ONE of the region’s last independent newspaper publishers has given a gloomy insight into the problems facing the industry.

In newly-filed accounts Hirst, Kidd & Rennie, which publishes the Oldham Evening Chronicle, said advertising revenue fell 14% in the year to March.

In response it has cut costs, raised the cover price and is looking to redevelop a former press hall. It admits it has cut the editorial team to the bone and it is now probably the smallest daily newsroom in the country.

In their report the directors say a new generation of readers has been lost to free, online news and its own online revenue does not yet sustain newsgathering costs.

During the year the business reined in pre-tax losses to £405,198 from £749,468 on sales of £3m, down 8.5%.

The directors said: “The newspaper industry in general is still suffering the effects of the country’s economic stagnation – the economy might even shrink this year – and also the continuing difficulties of the transition from print to online with its ethos of free news.

“The former traditionally allowed us to charge prices that could sustain our news gathering operation, the latter, despite its growth, does not as yet.

“Print readership attrition remains a problem. New readers should come from a fresh generation, but they have difference priorities. Today’s 16-year-olds were born in the same year as Google was founded – they have always had a free online means of gathering information at their fingertips even if their parents were avid newspaper readers.”

Other regional newspaper publishers, such as Manchester Evening News-owner Trinity Mirror the Lancashire Evening Post’s Johnston Press, have seen ad revenues decline by around 12%.

Hirst, Kidd & Rennie partly blamed its performance on disruption in Oldham caused by Metrolink works. It said this had thrown potential advertisers into disarray, with many businesses closing or relocating.

The directors’ report added: “The scope to cut costs is now limited, though we continue to economise where possible – we are producing a daily newspaper with fewer editorial staff than probably any other daily in the country.

“It is a tribute to their skill and tenacity that we continue to publish a product that is well worth reading. Employees throughout the company take on extra workload with no increased rewards. We are fortunate to have such a loyal and understanding workforce.”