Property slump adds to woes at Press group

Aug 28 2008 by Peter McCusker, The Journal

JOHNSTON Press says tumbling returns from the property and job markets had left its advertising revenues down 21% on a year ago.

The group, which publishes titles including The Scotsman and The Star in Sheffield, and the Shields Gazette, the Northumberland Gazette and the Sunderland Echo in the North East, axed its half-year dividend as it told shareholders that advertising trends continued to deteriorate.

Reporting an 18% fall in profits for the six months to June 30, Johnston said advertising revenues declined 9.5% in the half year, even though digital revenues grew by 52.1%.

The poor state of the housing market meant property print revenues fell by 17.8% over the six months, with the figure for June showing a decline of 33.1%.

Employment advertising also suffered a worsening trend, down by 10.4% in the six-month period.

Shares were 5% lower following the update.

Chief executive Tim Bowdler said: “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.”