Regional newspaper publisher, Johnston Press, has released today an upbeat trading statement for 2004 showing an increase in pre-tax profits of 18% year on year to £150.6 million, compared with £128 million in 2003.
This rise is better than expected and follows strong growth in advertising revenue during 2004 across the company’s string of regional newspapers (see
Profits At Johnston Press Fuelled By Ad Revenue). Like for like advertising revenue grew by 5.5% in the second half of 2004, resulting in overall growth for 2004 of 5%.
Turnover for the group increased by 5% to £518.8 million for 2004, up from £491.8 million in 2003, while operating cash flow rose by 15% to £192.7 compared to 2003’s figure of £167.6.
Commenting on the group’s outlook for 2005, Roger Parry chairman of Johntson Press said: “Despite the strength of trading in 2004 making for tough comparisons, like for like advertising in the first two months grew by 2.6%. Looking forward the Board expects to see another year of growth in advertising and other revenue streams.”
He continued: “We will also continue to invest heavily in editorial resources, printing, distribution and online technology. These factors, coupled with the tight management of costs, further efficiency gains and actions to offset the increase in newsprint prices, should lead to another year of satisfactory progress for the Group.”
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