Operating profit for Johnston Press
REGIONAL newspaper publisher Johnston Press has announced its first increase in operating profit in almost seven years, as it continues its plan to reduce costs by £20m in 2013.
Total revenues were down 11.4% on a like-for-like basis during the 18-week period leading up to May 4, although the Edinburgh-based owner of the Yorkshire Post, said revenue declines were slowing month-on-month. Total advertising revenues were down 15.1%.
Group circulation declined by 0.8% year-on-year, although Johnston said it expects to see an improvement in circulation revenue over the full year, with a revenue rise of around 6% for the 183 of its titles that have been relaunched.
It continues to focus on debt reduction and received £10m cash from the negotiated cancellation of print contract with News International.
Ashley Highfield, Johnston Press’ chief executive, said: “For the first time in almost seven years we are in a position to report a year-on-year increase in operating profit for the period.
“While the economic environment continued to be challenging, the implementation of our strategy progressed further with the successful completion of the relaunch of the vast majority of our titles, together with the further development of our digital business and the rollout of new hardware and software to all sales staff and journalists. With our reduced cost base and our continued focus on debt reduction, we remain on track to deliver a strong performance in 2013.”
