The regional publisher's adjusted pre-tax profits, which do not include non-recurring items such as a non-cash impairment charge of £417.5m taken against publishing titles and goodwill, were down from an adjusted pre-tax profit of £137.4m in 2007.
Including all non-recurring items, the company suffered a pre-tax loss of £429.3m for the year ended December 31, down from £124.7m in 2007.
Revenues fell 12.4% during the year, from £607.5m in 2007 to £531.9m in 2008 on the back of declining ad revenues, which fell 16.8% year on year in the UK and 22.6% in the Republic of Ireland.
Digital revenues climbed 31.1% to £19.8m during 2008, up from £15.1m in 2007.
Johnston Press, which publishes titles such as the Yorkshire Post and The Scotsman, cut costs by £32.3m in 2008 to partially offset the decline in ad revenue.
As the board's priority is debt reduction, it has recommended no final dividend payment. The available cash will instead be used to reduce debt.
John Fry, chief executive of Johnston Press, said: "At the time of writing, advertising markets remain very depressed with advertising revenues to date in 2009 35.9% below those for 2008.
"However, we are benefiting from the full effects of the 2008 cost reduction programme with more initiatives in place which will drive further efficiencies. Costs for the first two months of 2009 are running 15.7% down on the same period in 2008.
"In the short term there is little prospect of a turn in the advertising cycle and our expectation is for 2009 to be a very challenging year with revenues significantly below 2008 levels and only partially offset by lower costs."
Johnston Press shares were trading at 6.36p at 9am this morning after closing at 7.72p yesterday.
All of the UK's regional publishers have been hit hard by the economic downturn.
Yesterday it was reported that the Observer Standard Media Group has called in the administrators, putting up to 150 jobs under threat. The group is looking for a buyer for its nine West Midlands titles.
It was also revealed yesterday that Manchester Evening News and local weekly papers owner MEN Media is to shed 150 jobs including 78 editorial roles and close eight offices around the Manchester area.
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