27/08/2008

The publishers of The Scotsman have experienced a near 20 per cent fall in profit compared to last year, as a result of advertising revenue declining over the same period by almost ten per cent.

This morning, Johnston Press announcing revealed their half-year results up to the end of June.

While revenue was down from £312.8 million during the first 26 weeks of last year to £293.1 million during the same period this year (a fall of 6.3 per cent), profit before tax was down from £76.3 million to £62.5 million (a drop of 18.1 per cent). Operating profit (before non-recurring items), meanwhile, was down from £96.7 million to £81.6 million (down 15.6 per cent).

Overall advertising revenues over the period fell by 9.5 per cent - despite digital revenues growing by 52.1 per cent.

Johnston publishes 18 daily and 300 weekly newspapers in the UK.

Said chief executive, Tim Bowdler: “Advertising trends have continued to deteriorate over the course of the year and future performance will  inevitably be linked to the economies of the UK and to a lesser extent that of the Republic of Ireland. In response to the current challenging circumstances, we continue to actively manage our cost base to  achieve productivity gains and in a manner which will protect the long term prospects of the group. We  expect to deliver a result reflective of these initiatives and the difficult market conditions”.

Recently, the group receive a cash boost with the sale of 20 per cent of its equity to the investment arm of Malaysian billionaire, Ananda Krishnan - Usaha Tegas. That was to raise £43 million, to accompany a parallel £170 million Rights Issue.

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