Archant has announced a 19.4% drop in profit in the first half of 2006, attributing the decline to fundamental structural changes in its markets and cyclical economic forces.
In the six months to July 1 the company’s profits stood at £10.2 million. The regional newspaper and magazine group also said that its revenue was down 2.8% to £96.4 million.
Advertising sales were down 7.7%, with reductions in all categories except property.
Magazine turnover increased by 14.4% to £24.1 million and operating profit was up 72.1% at £2.3 million.
Richard Jewson, chairman of Archant, said: “Both cyclical economic forces and fundamental structural changes in our markets are clearly influencing performance but the evidence suggests that much of the present downturn is cyclical. We have appointed a development director with specific responsibilities for digital activity to implement a wide-ranging upgrade both to our classified websites and to the business model behind them.
“We do not expect any immediate improvement in advertising revenues although there is cautious optimism amongst some commentators that the economy will improve towards the end of 2006. We remain confident that the strength of our titles, the skills and commitment of our staff, and the actions that we are taking will enable us to re-establish the group’s growth as conditions improve.”
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