Regional newspaper publisher, Johnston Press, has released a downbeat trading update for the second half of the year, reporting a dip in recruitment advertising revenues of 22.9% year on year.
There is little chance of significant improvement in the market next year, the company said, sparking a dip in share price early this morning.
In a statement to the City, Johnston said: “Looking forward, the board does not anticipate any early marked improvement in advertising revenue streams.”
Overall, Johnston’s advertising revenues have fallen by 6.7% year on year, with the year to date described as one of “progress,” while 2006 is expected to be “satisfactory.”
More positive news was seen from the company’s newspaper sales revenues, which have risen over the second half of 2005 to outweigh the company’s decline in circulations, while internet revenues continue to show strong growth.
“An increase of 29% in online employment advertising was driven by strong growth from our recently launched CV matching service, and increased packaging of added-value on line services,” the company explained.
Elsewhere, the company revealed that it would take an interest in the sale of Northcliffe Newspapers by Daily Mail & General Trust, stating: “Whilst we will take an interest in developments, this will only be done in the context of creating value for our shareholders and in the belief that this is unlikely to be the last significant structural change in our industry.”
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