Revenues and profits down at Johnston Press
PRE-TAX profits are down 27% at media group Johnston Press as the group says it is “actively exploring opportunities for the disposal of further assets.”
The publisher, whose titles include the Yorkshire Post, The Sheffield Star and newly-acquired paper the i, saw profits dip to £12.3m in the 26 weeks to July 2,.
Revenues fell to £113.9m compared to £126.1m in the same period in 2015. Print sales continued to struggle, with the Yorkshire Post’s 9.8% decline slightly better than other regional dailies in the group.
Advertising revenues fell by 17.9% in Q1 but improved marginally with a 15.0% decline in Q2 in the run up to the EU referendum in June.
This year it sold its Isle of Man operations in a £4.25m disposal, and completed the acquisition of the i newspaper in April. Earlier this year the group confirmed it was looking to sell “non-core” titles.
Ashley Highfield, chief executive, commented: “The acquisition of the i newspaper in April was transformational for Johnston Press. Since the acquisition we have increased circulation considerably, using the extensive JP distribution network, and continued to grow market share.
“Perhaps more significantly, owning the i newspaper is enabling us to present the whole JP portfolio, and the 1XL digital advertising network, to media buying agencies and clients afresh. Further, we have started to see significant content sharing between the i and the rest of the portfolio.
“The market continues to be challenging and uncertainty surrounding the outcome of the Brexit negotiations has caused further softness in some segments of the advertising market, in June and July.
“Nevertheless, we are focused on our strategy of increasing overall audiences, maximising opportunities for the i, maintaining tight cost control and rebalancing our portfolio.”
