Johnston Press ads unimproved as digital does well

LONDON - Johnston Press has issued its latest trading update prior to the group's interim results on August 30, which indicate there has been no noticeable improvement in like-for-like advertising conditions.

The group said that since its last trading update on March 8, when it announced that like-for-like ad revenues were down year-on-year by 10.5%, there had been "no discernable improvement in market conditions".

As a result, advertising revenues on a like-for-like basis, excluding acquisitions, in the five months up to June 3 were down 9.4%. The figure including acquisitions still returned a fall of 8.4%.

Johnston Press, which owns the Yorkshire Post and the Herald in Scotland, said declines were experienced in its employment, motors and display, reflecting what it has described as the "relatively difficult conditions being experienced in the relevant markets, higher unemployment and lower vacancies".

The group added that lower car deals and dealer consolidation, and weakness in consumer confidence and poor results from a high number of high street retailers, had also affected returns.

It added: "Circulation revenues are ahead of last year and we continue to see good growth in all measures of our digital publishing activities."

Johnston Press said that contract print revenues were down year-on-year on a like-for-like basis off the back of the regional closures of the Halifax, Portsmouth Headset and Scarborough presses.

However, it expected an increase in contract printing from the acquisitions it made in 2005 and earlier this year, which include the acquisition of the Scotsman Publications for £160m from the Barclay brothers.

New printing facilities in Dinnington and Portsmouth are described as "on schedule and on budget", providing opportunity for future growth.

"The integration of our recent acquisitions is progressing well and, as previously stated, we expect them to be earnings enhancing in the year.

"These acquisitions combined with our ongoing control of costs and improved productivity will help offset the impact of increased newsprint prices and the difficult trading conditions."

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