Johnston Reports Healthy Half Year Profits

A better-than-expected performance from newly acquired businesses has helped Johnston Press to reach interim pre-tax profits up 36% on last year. The regional newspaper publisher has released results for the six months to 30 June 2000 which reveal pre-tax profit of £35.2 million and like-for-like operating profit of £33.2 million, up 14% on last year’s figure of £29.2 million.

The company reported that “substantial benefits continue to stem from the acquisition of Portsmouth and Sunderland Newspapers at the end of June 1999” (see Johnston’s P&S Acquisition Boosts Coverage). More recently, Johnston Press acquired 14 titles from Southnews in Lincolnshire, Nottingham and South Yorkshire (see Southnews Reports 6% Increase In Pre-Tax Profit) and has applied for clearance from the Competition Commission to bid for Regional Independent Media Holding’s titles (see Johnston Press Joins Race For RIM).

Total advertising revenue for the whole group was up 9% for the half year. The best performances were seen in the South, where double digit growth was experienced in revenue from the East and South Midlands and South of England divisions. All categories increased, but the principal driver was situations vacant advertising, which grew 28%.

Internet revenues for the six months reached £1.25 million. Johnston’s internet presence now consists of 54 locally branded websites, which achieve more than 3 million page impressions per month. In July, a strategic investment was made in Mirago, which operates a UK internet search service. A total of £3.5 million was invested, to acquire a 17.5% stake.

The company believes that the year has started well and thinks the second half of 2000 will be “healthy”. Chairman Fred Johnston concluded, “Despite an anticipated increase in the cost of newsprint from 2001, the medium-term outlook also remains positive.”

Johnston Press: 0131 225 3361