LONDON: Britain's regional newspaper group Johnston Press Plc. said revenue from recruitment advertisements fell by 23 per cent in the second half of the financial year ended 30 November and in the prevailing tough advertisement market it does not see any improvement in the near future.
In a pre-close trading statement, the company said it does not "anticipate any early marked improvement in advertising revenue streams". Like-for-like advertising revenues fell 6.7 per cent during the period, it said.
However, contributions from the recent acquisition of Score Press Ltd. from Emap Plc. and continuing cost controls will lead to "another year of progress" for profits before exceptional costs, the company said in the statement.
The group did not reveal its intentions on acquiring Northcliffe Newspapers, the regional press business put up for auction by Daily Mail & General Trust Plc., except saying it will "take an interest in developments".
The group said its newspaper sales revenues had grown over the second half -- more than offsetting an overall decline in circulations. Its internet revenues too showed strong growth.
Johnston had reported in August that first-half profit had increased 10 per cent to 58.1 million pounds on lower finance charges and cost-cutting, while revenue went up 1.2 per cent to 264.6 million pounds.
The group, U.K.'s fourth-largest regional newspaper publisher, brings out some 300 titles, including the Yorkshire Post and Wigan Observer.
Johnston's chief executive Tim Bowdler said the launch of a recruitment website by the NHS had affected his company's sales, but it is the health of the economy that is a significant factor.
Johnston shares declined by 15 pence, or 3.1 percent, to 462 pence a share. The company comes out with full year results on 8 March.
Posted
on : Wed, 14 Dec 2005 14:05 GMT | Business News
By : Pippa Fielding
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