Johnston Press reports first year-on-year operating profit increase since 2006

Johnston Press, owner of The Scotsman and The Yorkshire Evening Post, has reported its first year-on-year operating profit increase since 2006.

Operating profits were £40.5 million for the first half of 2010, up from £38.3 million in the first half of 2009.

Pre-tax profit in the six months to June 2010 was £26.1 million, and digital revenue grew 10.9% to £10 million.

Total revenues were down 5.2% year-on-year, to £207.3 million.

John Fry, Johnston Press chief executive, said: “These industry leading trends which demonstrate the strength of our publishing portfolio along with our continued focus on costs, efficiencies and debt reduction, give the board confidence, in the absence of a further deterioration in the UK economy, that the outcome for the group in 2010 will be in line with current market expectations.”

Figures were also given for the first six weeks of the second half – total advertising is down 3.7%, digital revenues has grown by 9.7%, and circulation revenue is down 1.6%.

Stuart Paterson, Johnston Press chief financial officer, said he has hopes that advertising revenue will return to growth soon:

“We were hopeful of seeing it some time this year and trends are continuing to improve. We are getting closer to that break even point. Hopefully it will come if not by the end of this year then early next year.”