Johnston Press saw a 6.3% fall in profits in 2007, with print advertising falling 2.1% year on year to £401.5 million.
The regional newspaper publisher said that while it expects strong digital growth in 2008, a “general lack of confidence” in the advertising markets will be a major influence in 2008.
Motoring ads saw the sharpest fall last year, down 8.2% from 2006 to £40.2 million, while display fell 4% to £117 million.
Property, the only print ad category to see an increase in revenues, was up 5.4% to £79.7 million.
Digital advertising accounted for £15.1 million through the year, with year on year growth of nearly 34%.
Roger Parry, Johnston chairman, said: “In the early weeks of 2008, print advertising revenues were down on the same period in 2007 and have been volatile week to week. During the same period digital revenues continued to grow strongly. With the new presses in Dinnington and Portsmouth now fully operational, we will benefit from increased contract print revenues.
“Economic growth in the UK and Ireland for 2008 is expected to be slower than that achieved last year. We will have the benefit of reduced newsprint prices during the year and expect to maintain a tight control over the other costs of the business, in part as a result of continued investment in IT systems to drive further operating efficiencies.”
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