Latest Johnston Press Forecasts From Merrill Lynch

As a result of better than expected advertising revenue at Johnston Press, Merrill Lynch has revised upwards its advertising growth forecast for the regional newspaper publisher to 5.3% this year and 4% in 2005.

In light of Johnston Press posting impressive profit growth of 16%, to £77.3 million from January to June 2004, Merrill Lynch said: “Johnston remains a firm favourite in the media sector with an unblemished record of profit growth.”

Despite this, however, analysts feel that in the absence of acquisitions, double-digit earnings growth will be more difficult to achieve in the future, given the slowing top line momentum and rising newsprint costs next year.

Merrill Lynch said: “We remain of the view that Johnston press can probably grow earnings at the high single digital level in its own right but needs sizeable acquisitions to drive this above the 10% that we have become accustomed to.”

However, this was still not enough to dissuade Merrill Lynch from revising upwards its pre-tax profit forecast which has now been set at £146.9 million, a 2.8% increase on the previous forecast.

Johnston Press: 0207 583 2100 www.johnstonpress.co.uk

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