Johnston Press Full-Year Pretax Loss Balloons On Write Downs

LONDON (Alliance News) - Johnston Press PLC Friday posted a widened pretax loss for the 52 weeks ended December 28, 2013, as results took a big blow from asset write downs.

The newspaper publishing company posted a pretax loss of GBP286.8 million in the recent financial year, widened from GBP6.8 million a year before, as revenue declined to GBP302.8 million from GBP358.7 million.

The company took a GBP202.4 million impairment on its publishing titles and GBP68.4 million on the value of its presses and property assets, while also posting GBP34.0 million in restructuring costs.

Advertising revenue dropped 10% in the full year, although the decline slowed to 4.4% in the second half.

Newspaper sales revenues dropped 4.5% during the year, although digital revenue rose 19%.

Johnston's digital display advertising revenue, which it considers its most strategically important area, rose 30% during 2013, including a 45% rise in the second half of the year.

In December 2013, the company had unique digital users of 13.3 million, up 48%. In January and February, 2014, this number has exceeded 15 million.

The company said that consumer confidence had remained low in the first half of the year, hitting advertiser spending, although this had improved in the second half.

The company underwent a large-scale revamp during the year, re-launching its websites and print titles, beginning to re-invent its community newspapers to add higher levels of user-generated content, and investing in its digital platforms.

Johnston said that as the benefits of these measures began to come through, and as it saw strong digital growth and slowing print decline, it was well positioned for further progress in 2014.

Advertising revenues dropped 6.0 in the first two months of 2014. However, it said it has seen an 8% increase in earnings before interest, tax, deprecation and amortisation during the period.

The company is currently exploring options for potential refinancing, including a potential equity fundraising.

Shares in Johnston Press were trading down 3.1% at 23.25 pence Friday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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