Johnston Press Sees Profits Jump After RIM Acquisition

Pre-tax profits at regional newspaper group, Johnston Press, jumped by 51% in the first half of the year, as advertising revenues nudged up by 3%.

The company’s figures were bolstered by the integration of Regional Independent Media (RIM), which it acquired in April last year. Operating profits were up by 35% to £84.1 million including the contribution from RIM, but rose by just 7% when excluding this contribution.

Ad revenues continued to show modest growth in all categories, although conditions varied across the country, particularly in recruitment advertising, with the north generally stronger than the south. On a like for like basis, ad volumes were up by 1.6%.

Outlook

Johnston says that it has made a satisfactory start to the second half of the year and is continuing to benefit from the integration of the RIM businesses.

In July advertising revenues grew by 2.5%, according to chief executive Tim Bowdler.

Bowdler says that whilst he sees no prospect of a significant improvement in overall market conditions, he does expect continued modest advertising revenue growth and good progress across the full year.

Shares in Johnston Press were up 2.9% at 445p by mid-morning today.

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