Underlying profits return for newspaper group
REGIONAL newspaper group Johnston Press has posted a £286.8m full year loss, but saw underlying profits increase for the first time in seven years.
The newspaper group, which owns the Yorkshire Post, said the loss was down to a non-cash exceptional charge of £300m.
Most of this related to a reduction in the carrying value of the group’s titles and other assets.
In the year to the end of December the group reported revenues of £302.7m, down from £358.6m last time. After stripping out the exceptional costs the group made a pre-tax profit of £13.8m, up from £12.5m.
Advertising revenues in 2013 declined 6.4% on an underlying basis but digital revenues were up 19.4% in the full year and 25.3% in the second half of 2013.
Chief executive Ashley Highfield said: “We are delighted to see a return to underlying operating profit growth for the first time in seven years, with underlying operating profits in 2013 increasing by 2.5% on 2012. Having delivered EBITDA of £62.7m in 2013, January and February has seen an 8% increase in EBITDA year-on-year.
“Our digital growth remains strong, with significantly increasing audiences coming to our websites in 2013 and into 2014. Along with slowing declines in print advertising revenues, and a stable circulation revenue decline rate, these are clear indications of good progress during the year in the implementation of our strategy for growth.”
Net debt was down £17.3m to £302m for the year.
