Heavily indebted newspaper publisher Johnston Press has reporting 'challenging market conditions' although it expects full-year operating profit performance for 2012 to be broadly in line with current market expectations.
It said: "Provided that the trading environment does not deteriorate further, with continued achievement of the identified cost savings, increased circulation revenues during the fourth quarter and a growing digital business, we expect full year operating profit performance for 2012 to be broadly in line with current market expectations."
In a trading update for the 18 weeks to November 3rd, the company reported that like-for-like revenues were down 11.4% year on year, with circulation revenues 0.5% lower and total print and digital advertising revenues down 14.0%. The unadjusted declines were 16.1%, 5.1% and 16.3% respectively.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Digital revenues grew by 2.9% year-on-year in the 18-week period. Online display revenues continued to show strong growth but the overall digital growth has been impacted by the reduced digital upsell from a lower level of print employment advertising. It said that: "This is being addressed by an increased focus on standalone digital employment advertising and a move to a 'digital first' approach".
Johnston has projected that full-year like-for-like cost savings in 2012 will now exceed £30m, representing a further £5m saving over and above the amount estimated at the time of the interim results.
Net debt has fallen from £351.7m at the start of the year to £336m as at the end of October with further reductions expected over the remainder of the year. This has been achieved after incurring £11.7m of refinancing costs and £13.8 m relating to the cash impact of restructuring.
CM
-
Rents rise at slowest pace for four years – is buy-to-let still worth it?Slowing rental growth and higher property taxes are creating a headache for landlords. Does buy-to-let still offer a good yield?
-
Should you bag a bargain with a half-price investment trust?Twenty-six investment trusts look cheap by historic standards, with some trading at a discount of more than 50%. Are they a bargain or value trap?
