Regional newspaper publisher, Johnston Press, has today announced that pre-tax profit for the first six months of this year rose by 16% to £77.3 million, spurred by greater than expected advertising revenue.
Operating profit at the group from January to June 2004, jumped 9.5% to £92 million, fuelled by an overall growth of 6% from advertising, which was led by a strong performance from recruitment which was up 13.3%. While turnover climbed to £261.2 million, up 5.0% year-on-year.
Chief executive, Tim Bowdler said: “This six months to 30 June 2004 have been a good trading period for Johnston Press. The rating of underlying advertising revenue growth was above our expectations and this, when combined with the Group’s ongoing focus on managing an efficient business, has produced an excellent result.”
However, Bowdler warned that by the second half of 2004, advertising revenue growth may look pale in comparison to 2003. He said: “We have made a good start to the second half. Whilst we expect continued advertising revenue growth, the rate of increase is likely to slow due to the stronger comparatives in the second half of 2003. Newsprint prices remain stable and the Group continues to maintain a tight control of costs, giving the board confidence about the prospects for the remainder of 2004 and of achieving good progress for the year as a whole.”
Newspaper sales revenue at the group grew by 1.7%, underlining the strength of the paid-for weekly titles, which saw circulation rise by 0.3%.
However, circulation at the daily titles dipped by 4.9% as a result of new bulk sales rules from the Audit Bureau of Circulation. In a statement this morning, Bowdler assured that ‘a number of initiatives are in place, underpinned by a substantial market research programme, aimed at securing a further improvement in performance.’
The group’s 167 local websites are also proving to be a success for Johnston Press, contributing £2.1 million during the period to profitability.
The statement said that the planned printwork projects in Leeds and Sunderland were on schedule, with Leeds already in production and Sunderland due for completion before the end of this year. The group is also set to secure another printworks plant and is looking for a suitable location in Sheffield, which is scheduled to be fully operative by the end of 2006.
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