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Newspaper firm’s profits up while revenues drop

Category: Scotland Business News — Gary Cain on November 19, 2013

Johnston Press last week revealed savings of £30 million across the group in the last 12 months, with profits rising. However, it continues to see revenues and advertising income slide.

In the four months leading up to November, the firm saw its profits rise by nearly eight percent. Over the same time frame though, revenue fell by nearly seven percent and advertisement revenue fell by more than six percent.

Despite the losses, however, the decline rate was lower than in previous results.

With newspaper sales continuing to fall, the firm is investing in its digital strategy. In September, the group relaunched almost 200 websites. This led to an increase of just 50 percent in digital revenues in October, with total revenue from the stream increasing by 32 percent in the last 12 months.

Digital and financial restrategising, often through invoice factoring, is something that many firms in Scotland are undertaking right now.
Talking about the results, the CEO of Johnston Press, Ashley Highfield, said:

“It remains a key goal for the whole group to reach the point where digital growth will offset any further decline so we can return to overall top-line growth.

“With the refreshed print titles and websites averaging monthly audiences of over 25 million, and new digital products and services, we believe that Johnston Press remains as relevant to local communities and advertisers, both local and national as it has ever been.”

Highfield went on to add that whilst investment in the digital future would be a major focus for the group, the reduction of costs in other areas would continue.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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