The downturn in advertising revenues at Johnston Press has accelerated in the second half of the year, according to an interim management statement published today.

Total revenues for the 44 weeks up to 1 November were down 15.5pc down on the same period last year.

In the half year results announced on 27 August, JP disclosed total advertising revenues had declined for the first 26 weeks of the year by 9.5pc on a like-for-like basis.

The company says that overall performance has deteriorated since then due to further declines in property advertising, combined with significant falls in employment and display advertising.

In the weeks 27-44, there were year-on-year declines in property of 48.4pc, employment 32.1pc, motors 24.3pc and display 12.1pc on a like-for-like and basis.

Within the advertising decline of 15.5pc for the 44 weeks, print advertising was down by 17.4pc while digital advertising continued to grow strongly at 36.8pc.

Newspaper sales revenues after 44 weeks are slightly down on last year with circulations suffering from both the general economic conditions and a significant reduction in levels of interest in the property market.

Contract printing revenues on a like-for-like basis are ahead of last year by 5.3pc as the company benefits from the full year of the News International contract at Portsmouth.

Net debt at 1 November was £465m, a reduction of £19m from the balance at 30 June – the company said it expected this to reduce again between now and the year end.

At the half year results announcement, JP showed underlying cost savings of £7.6m in the first 26 weeks of the year.

It says this programme has continued into the second half with further savings being delivered as it adjusts cost structure to one more in line with the current advertising environment.

The statement said: “Given the challenging and deteriorating economic and operating environment, the Group is concentrating on managing its cost base and reducing its debt levels, but would still expect to deliver an operating profit for the full year at the lower end of current market expectations.”

Comments

Dan Depan (12/11/2008 09:58:07)
“Newspaper sales revenues after 44 weeks are slightly down on last year with circulations suffering from both the general economic conditions and a significant reduction in levels of interest in the property market”
So people only buy newspapers to read the adverts then do they? Perhaps a reason for the decline in circulation is the number of editorial posts left empty or axed at JP and the subsequent reduction in quality and quantity of local stories.

Stu Bee (12/11/2008 14:15:23)
My new team, covering a number of district offices, has been reduced by a quarter since in the space of a year – no redundancies but absolutely no new staff either. And still the big bosses wonder why sales are dropping – we just don’t have time to produce the same quality product as before. Credit crunch or not, that has to be a factor in the decline.

togster (12/11/2008 16:11:53)
JP splashes its cash on company cars, plasma screens in the newsroom and TV production quality video cameras for small weekly titles. Is it any wonder its in this mess? Its a shame Advertising is always thrown the lifeline, whereas jobs in Editorial are the first to go, given the fact more people are needed to utilise the expensive ‘new media’ equipment.

Wallace (12/11/2008 19:55:28)
“Newspaper sales revenues after 44 weeks are slightly down on last year with circulations suffering from both the general economic conditions and a significant reduction in levels of interest in the property market…”
How much longer will it take for the big bosses to crawl out from under their giant pay cheques and realise sales are down because the overstretched reporters just don’t have time to dig out good stories, research them, write them, update the websites, take the photos, make the videos and sweep the office floors while they’re at it?