Newsquest ‘Cautiously Optimistic’ For 1999

Jim Brown, executive chairman of regional newspaper publisher Newsquest, has said that he is ‘cautiously optimistic’ that his company should see another good year during 1999.

“Recruitment advertising, an important economic guide, has held up promisingly in the early period of 1999. The general strength of local economies remains important to regional newspaper businesses, and we are well placed in the more prosperous South of England,” he added.

Announcing its preliminary results for the 53 weeks ended 3 January 1999, Newsquest this morning reported an underlying increase in advertising revenue of 6.7%. Pre-tax profits were £65.8 million (up 15.9%) on a turnover of £305.8 million (up 7.1%), both in line with predictions (see The Week Ahead).

Newsquest points to growth in classified advertising (up 8%) and development in other areas, including the internet, direct marketing, niche products and newspaper launches. Brown singles out the internet as the most ‘exciting and significant’ of the publisher’s current opportunities: “Newsquest sees exponential growth for its internet revenue and online audience. The focus in 1998 has been on the successful launch and roll-out of our Digital Community websites under the ‘This Is…’ branding,” he says.

The company is currently anticipating a Monopolies and Mergers Commission report on its ‘friendly acquisition’ bid for Portsmouth & Sunderland Newspapers (see Newsquest Confirms Interest In Portsmouth & Sunderland).

At 12:30pm today Newsquest shares stood at 365p, 12˝p below the opening price of 377˝p.

Newsquest: 0181 640 8989