Regional newspaper group, Johnston Press, has warned that there is little prospect of a recovery in the advertising market in the second half of 2005, describing the market as “challenging” and “difficult”.
The group revealed that revenue for the six months to June 2005 reached £264.6 million, up from £261.5 million this time last year. Pre-tax profits for the period rose by 9.3% to £82.2 million.
Johnston Press, however, remains optimistic about the last six months of 2005, saying that it expects “satisfactory” results, buoyed by “tight” cost management and a contribution from Score Press, which it recently acquired from Emap for £155 million.
Recruitment was reported to have suffered a “sharp” slump, with revenues down by 9% year on year, however, Tim Bowdler, chief executive of Johnston Press insisted that there was “no evidence” that advertisers had begun to “migrate” to recruitment websites.
Bowdler commented: “Things are more difficult, but it’s a reflection of more difficult economic circumstances, not a structural change in the market.
Other categories performed “broadly in line” with expectations, with property ad revenues revealed to have risen “strongly”, while classified advertising also enjoyed “good growth.”
Overall, like for like ad revenues dropped by 0.8% in the first half of the year, with newspaper sales flat year on year.
The publishing group’s results echo predictions given in June, when it estimated its actual growth in advertising revenue to be 1.5% up year on year in the first 23 weeks of the year (see Johnston Press Warns Of Advertising Slowdown).
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