Ad slump hits Johnston Press

REGIONAL newspaper group Johnston Press, publisher of the Yorkshire Post, has seen advertising revenues fall by more than 10% since the start of the year.

In the first quarter, advertising shrank by 11.6% although this improved to a fall of 7.8% in the first five weeks of the second quarter.

The company said reductions in public sector spending has had a particular impact with employment advertising down 30.7% in the 18 weeks to May 7 compared to last year.

Display advertising perfomed better overall, falling 7.9% in the first quarter but growing 5.5% in recent weeks.

Johnston Press said had brought forward a £20m reduction in its borrowing facilities from June next year and this would save the Group around £500,000 in interest costs this year. The company is also looking to make year on year savings of around £5m.

The firm expects full-year results to be in line with market expectations despite the hit taken on advertising revenues and rises in the cost of newsprint.