Johnston Press sees nearly 50% decline in pre-tax-profit
Publisher Johnson Press has announced that it has a partnership with online property company Zoopla and online voucher service Nimble Commerce., while revealing that a 47.4% decrease in profit for the first half of 2011, before tax.
The publisher has released its annual financial figures this morning, having made £13.8m in profit before tax, down by nearly 50% from last year when it made £26.1m before tax.
Total revenue for the publisher also fell by 7.5% to £191.8m, with total advertising revenue also declining by 10% and circulation down by 1.8%.
Digital revenue also declined by 5% on the first half of 2010’s figures, although the company was able to recude its net debt by £16m to £370.7m.
John Fry, outgoing chief executive officer of Johnston Press said: “The Group achieved an operating profit before non-recurring items of £33.3m despite the challenging UK economic environment of the first half of 2011, down 17.6% on the first half of 2010. This was achieved by tight operational control, with further cost reductions of £8.3m resulting from new processes and an increased centralisation of back office functions. Operating cash flow within the Group remains strong, with a further debt reduction of £16.0m achieved in the first half of 2011.
“We remain cautious about the advertising outlook for the second half of the year, with total advertising revenues in the first seven weeks down 8.1%. Digital revenues, which returned to year-on-year growth in May, have continued to grow in the second half with the first seven weeks up 6.8% compared to the same period in 2010. We are also delighted to be able to announce the new digital partnerships with Zoopla and Nimble which will enable a significant enhancement of our property website and the launch of a new online vouchers business in the autumn. The Board has confidence that, in the absence of a further significant deterioration in the UK economy, the outcome for the Group in 2011 will be broadly in line with current expectations.”
Fry will step down from his role as CEO to be replaced by Ashley Highfield from 1 November.