LONDON (Alliance News) - Media group Johnston Press PLC Wednesday reported another drop in revenue in the first-half of the year, but said it managed to significantly narrow its losses in the period, when it took a big blow from asset write downs in the same period last year.
The publisher of regional newspapers including The Scotsman and The Yorkshire Post posted a pretax loss of GBP6.3 million for the 26 weeks to June 28, compared with a pretax loss of GBP254.0 million in the same period a year earlier, when it booked hefty impairment charges on its publishing titles and on the value of its presses and property assets.
On an underlying basis, which strips out exceptional costs, the company said its pretax profit increased to GBP6.1 million, from GBP2.1 million last year.
Revenue in the first-half fell to GBP135.8 million, Johnston Press said, down from GBP153.4 million a year earlier.
Advertising revenue dropped 2.1% in the first-half and the decline in newspaper sales revenues stabilised somewhat at 4.6%, although digital revenue rose more than 23%.
The media group has been attempting to grow its overall audience through the re-launch of its print titles and investing in new digital products, in a bid to stem the decline in top line revenue and return to top line growth and reverse the decline in its operating profit so it can continue to pay down its debt.
"We are growing strongly in a number of categories, and reducing the decline in the rest, whilst continuing to bring down our cost base. As a result we are growing operating profits and margins," said Chief Executive Ashley Highfield in a statement.
During the period, Johnston Press successfully completed its capital refinancing plan to pay down its debt and stabilise its finances, raising GBP225 million through a bond issue and GBP140 million through a placing and rights issue.
It also sold its Republic of Ireland business, comprising of 12 titles, a move it made so it could solely focus on driving its business in the UK and Isle of Man, especially digitally.
"The economy is continuing to improve and the ripple-out effect from London and the South East is beginning to show in the numbers in Scotland, Yorkshire and Northern Ireland. We have also seen a growth in a number of national advertising sectors such as Telecom, Finance, Travel and Grocery," the company said.
Shares in Johnston Press were trading 1.4% lower at 4.14 pence Wednesday mid-morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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