Regional publisher Johnston Press has promised further cost savings in 2012 in a financial update published today.
The company published its latest interim management statement this morning, showing a 9.1pc year-on-year drop in advertising revenue in the first 18 weeks of the year.
Although the revenue decline has slightly slowed compared to a 9.6pc fall in the first quarter of the year, the company said the advertising outlook for the year remained “volatile.”
The statement said costs will continue to be tightly controlled, adding: “We expect that further cost savings will be achieved in 2012.”
Today’s figures showed classified print advertising revenues down 11.5pc year-on-year with recruitment down 16.2pc.
However digital revenues enjoyed an “excellent” start to the year, up 13.9pc in the first 18 weeks, with online display, online recruitment and the Find it business directory helping to drive the growth.
Circulation revenue continued to be “resilient” according to the report, down 2pc year-on-year for the period.
The company said the proposed relaunch of its 170 paid-for titles, which include five of its daily newspapers switching to weekly publication, would bring benefits in the second half of the year.
Said the statement: “The advertising outlook for the year remains volatile, but we anticipate that the strategy that the Group has set out will provide benefits from the relaunches of all of the group’s paid-for titles during the year, along with continued improvement in digital performance throughout 2012.
“We expect that the results for the full year will be in line with market expectations.”
Johnston Press has also announced today that its local online motors offering will in future be powered by motors.co.uk.
Chief executive Ashley Highfield said: “Motors.co.uk is one of the most dynamic players in the online motors space and this partnership gives us an exciting new platform for our local websites and great reach for our motors advertisers.
“It forms another step in our strategy to deliver highly engaged, local website portals across all of our markets.”