Media group Johnston Press said profit before tax and non recurring items almost halved in the first half of 2012 as print advertising revenues slumped.
The owner of The Scotsman and Yorkshire Post said adjusted pre-tax profits fell to £8.06m in the 26 weeks ended 30 June 2012 from £15.7m the same time a year earlier. Total revenue was down 8.2% year-on-year.
Operating profit climbed 16% to £37.8m and margins were maintained at 17.3%.
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The half year figures include a one off payment of £30m from News International for the partial termination of a printing facilities contract.
Johnston Press' figures include £20m in one-off costs such as staff redundancies after staff number were reduced by 8.5% year-on-year in the first half.
Otherwise print advertising revenues fell 12.5% but on a brighter note digital revenues rose 8.4%.
The group commented: "As well as the challenging economic environment, the beginning of the second half of this year has been dominated by the coverage of the Olympic Games and the advertising market has reflected this. Total advertising revenues in the first six weeks was down 14.7%, although the strong growth in digital display and online property revenues continued into the second half of the year, with digital revenues in these areas growing strongly albeit from a low revenue base."
Johnston said it remains focused on reducing its net debt.
"In the absence of a further deterioration in the UK economy, the Board is confident that the outcome for the group in 2012 will be in line with current expectations," the group added.
CJ
