Johnston Press Sees Superb Year In 2003
Regional newspaper group, Johnston Press, has posted a 38% rise in 2003 profits to £128.0 million. These include the first full-year contribution from Regional Independent Media (RIM), which Johnston acquired in 2002.
The group says that like-for-like advertising revenues grew by 3.8%, with a rise of 3.0% in H1 followed by 4.6% growth in H2. This improvement in revenues has continued into 2004, with growth running at a similar level to H2 2003, according to chairman Roger Parry.
Johnston says that this healthy advertising growth represents a strong performance as against the whole media sector and reflects the fact that consumer confidence in local markets remained positive throughout the year.
Johnston’s turnover was £491.8 million in 2003, up 15% year on year. Operating margins increased from 30.6% to 33.1% and earnings per share were up by 21% to 32.4p.
Parry describes 2003 as another superb year for the company. Looking ahead, he says that Johnston will continue to ‘very actively seek’ acquisition opportunities that will blend with the group’s existing businesses.
Chief executive Tim Bowdler says that the Government’s recent Communications Act, which ostensibly relaxes restrictions on ownership consolidation, may not in practice represent a significant easing of regulations. He says that there is some uncertainty as to how the OFT, DTI and Ofcom will treat newspaper transfers, as well as some ‘unhelpful’ conclusions of recent Competition Commission inquiries.
“It is the opinion of Johnston Press that the Commission has tended to take an overly narrow view of market definition which considerably underestimates the extent to which local newspapers are subject to competition from alternative media. We believe that they have also misjudged the ease of new market entry and underestimated its impact on publisher behaviour,” says Bowdler.
Nevertheless, further ‘sensible’ consolidation in the newspaper industry should not be deterred by the Communications Act, according to Johnston. “We are confident that over time the regulators will reach a clearer understanding of the ways in which our markets operate. We continue to harbour hopes that the Government’s promises of genuine deregulation and a lighter touch approach will be delivered,” says Bowdler.
Johnston Press: 0131 225 3361 www.jptalk.co.uk
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