Johnston Press: Q3 more challenging than H1
Johnston Press has reported a decline in total revenues in quarter 3, as its reports that trading in the second half of 2012 has been even more challenging than in the first.
The interim management statement states that like-for-like revenues have fallen by 11.4% year on year versus the corresponding period. Circulation revenues were only down 0.5% whereas print and digital advertising revenues had dropped 14%.
The reporting of results on both a like-for-like and unadjusted basis is the result of Johnston Press closing some titles, changing the frequency of publication for some newspapers from daily to weekly and changes to the contract printing operations as a result of the revised arrangements with News International.
The unadjusted figures show a drop in total revenues of 16.1%, a decrease in circulation revenues of 5.1% and a fall in total print and digital advertising revenues of 16.3%.
However, digital revenues alone increased 2.9%. The company stated that the overall digital growth has been impacted by the reduced digital upsell from a lower level of print employment advertising. This is being addressed by an increased focus on standalone digital employment advertising and a move to a ‘digital first’ approach.
The company expects full year operating profit performance for 2012 to be broadly in line with current market expectations.
Chief executive Ashley Highfield said: “The second half of 2012 has seen acceleration in the implementation of the strategy for the business. While market conditions have been even tougher than expected, we have made good progress in restructuring our operations, reducing the cost base, maintaining focus on debt reduction and continuing to invest in growth areas. We have moved forward with the re-launch of our titles with encouraging early signs and our digital business has seen a huge increase in audience this year, as well as the launch of services across iPad, mobile and PC, which will provide a spring-board to future digital revenue growth. As a result, the business is moving onto a more stable footing as we go into 2013 when the full benefits of the changes will be seen.